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October 8, 2009

Dell to close North Calorina manufacturing plant

Says the closure is a part of its initiative to enhance customer value

By CBR Staff Writer

Dell is going to close its Winston-Salem, North Carolina, desktop computer manufacturing plant early next year. The company said that this move is a part of an ongoing initiative to enhance the long-term value it delivers to customers by simplifying operations and improving efficiency.

Approximately 905 employees will be affected by the closure, with about 600 to be released next month. The closure is expected to be completed in January 2010. Affected employees will receive competitive severance packages, including severance pay, incentive payments, benefits continuation and outplacement services, the company said.

Dell’s global manufacturing and fulfillment network consists of company-owned plants located in: Hortolandia, Brazil; Miami, Florida; Nashville, Tennessee; and Austin, Texas; Limerick, Ireland; Lodz, Poland;  Xiamen, China; Penang, Malaysia; and Chennai, India.

In January and June 2009, respectively, the company announced the migration of its Ireland-based manufacturing operation to its Poland plant, and sale of its Tennessee remanufacturing operation to GENCO. The company also partners with third-party manufacturers to build certain products.

Frank Miller, vice president of public business unit supply chain at Dell, said: “This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for Dell customers and our company.

“The efforts of our team members there have been significant and we’re committed to helping them through their transition. Of course, we’ll continue to honor all agreements with North Carolina, Forsyth County and Winston-Salem.”

Dell added that it will continue to comply with the terms of incentive agreements with the citizens of North Carolina.  

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