Dell Opening Chinese Factory, Creating 3,000 Jobs

Share on Twitter

In an effort to gain a foothold in the largest growing consumer market in the world, Dell Inc., one of America’s largest manufacturers of computers, is planning to expand its operations in China with an investment of over $100 billion over the next decade, according to a company press release.

The company will build a manufacturing, sale and service center in the Western region of the country that is expected to be operational by 2011. The plant is expected to employ at least 3,000 workers eventually.

“We’re planning for the future, and we’re excited about our strategic investments in China that will help us better serve the region’s increasing need for technology solutions and services,” said Michael Dell, chairman and CEO of Dell.

Dell, with 96,000 employees worldwide, already employs roughly 6,000 workers in China. In addition to its plans to open a new factory, China also plans to expand another plant, which will create another 300 jobs.

Although the company says the move will not affect its U.S. operations, it is part of a long line of decisions designed to cut down on labor costs, gain a foothold in emerging markets in the Third World and take advantage of lax environmental and labor laws.

In the past two years, Dell has closed two domestic manufacturing facilities: one in Austin, Texas, and another in Lebanon, Tennessee.

And just last year, the company announced that it would be closing its last large U.S. manufacturing facility. The plant, located in Winston-Salem, North Carolina, was the last U.S. facility where Dell manufactured personal computers.

That closure is set to cost some 900 jobs, the company said last year.

The closures are part of a concerted effort on the part of Dell to remain competitive in the personal computer market. Many of its competitors are outsourcing production to low-wage nations and saving on production costs, and Dell is following their lead.

Dell now manufactures personal computers in Poland, Malaysia, India, China and Ireland, but plans to soon close the Ireland facility as well.

And if the trends are any indication, it appears as if Dell will continue to expand in places like China and India well into the future, most likely leaving the company with little more than a headquarters and a few other high-level operations in the U.S.

“The strong Chengdu workforce and our new operations there will better position Dell for additional growth opportunities in western China,” said Amit Midha, president, Dell China.

Share on Twitter
Powered by WordPress | Designed by: diet | Thanks to lasik, online colleges and seo