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USA - Dell to close their desktop plant in North Carolina by 2010
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by israeli.agent | October 7, 2009 at 07:31 pm
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As a part of their new corporate strategy and expected to cut the computer giants cost by $4 billions, PC giant Dell is closing down its desktop assembly plant in Winston-Salem, North Carolina.
When started in 2005, the plant eas expected to create 1500 jobs directly and 500 more indirectly and was enjoying a tax and grant deal amounts to $ 318 million.
But the world wide trend of users opting more for laptops rather than desktops has affected Dell badly.
The biggest loss will be for the public agencies those spend a lot of dollars to welcome this plant by building infrastructure, opened training centers to train company workers even before the opening of the plant.
Dell Inc said Wednesday it will close a desktop computer manufacturing plant in Winston-Salem, North Carolina, by the end of January 2010.The computer maker said 905 people will be laid off, with around 600 to be let go next month. The plant was opened in 2005.
Dell was promised more than $300 million in state and local incentives to open the plant. But it was required to invest $100 million, create 1,700 jobs by September 2010 and maintain those jobs for 10 more years. If those terms weren't met, the company would forfeit the incentive package.
Dell said it would comply with the terms of the incentive agreement.
The plant closure is part of a plan to save $4 billion a year at Dell by 2011.
In June, Dell sold its Lebanon, Tennessee, remanufacturing plant to Genco. In January, Dell said the company would move its Ireland manufacturing operations to Poland, a process that is still ongoing.
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at 08:03 on October 8th, 2009
Notice it says the plan will save 4 Billion a year. That is a fancy number they throw in to make it looks like closing the NC plant will save 4 billion. To them though, it's nothing to give up 318 million in incentives, not to mention breaking their promise to NC and the workers of Winston-Salem. They have gone to their bean counters and PR people and decided that the stench connected to the Dell name will blow over and that they will still come out on top. This amounts to an 'actuary' loss to Dell, one they're willing to handle. I think personally it's up to Winston-Salem and NC as a whole to not just sue Dell but Boycott Dell products. If I were the Mooresville NC Public Library, I'd be returning every single PC in the building. They're all those new Dell models that have the CPU mounted on the back of the flat panel monitor. I estimated on Dell's site that those were worth an average of $2400 a piece. Granted that's probably not what MPL paid, but still.
The word "Greed" is still alive and well in the corporate vocabulary, despite Bush being out of the Whitehouse.
OH and trust me, I'd be saying the exact same thing if Gateway or any other PC maker was doing what Dell is doing to NC.