| By Maureen O'Gara | Article Rating: |
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| December 3, 2009 02:00 PM EST | Reads: |
1,171 |
Dell is transferring ownership of its new factory in Poland over to contract manufacturer Foxconn Technology Group on undisclosed terms.
Foxconn will produce desktops, laptops, servers and storage for Dell at the Lodz plant and reportedly retain present staff.
Dell just shifted its EMEA production from Ireland to Poland for Lodz's marginally cheaper wages, savaging the recession-ravaged Irish economy and adding to its already long unemployment lines.
Dell was Ireland's second-largest manufacturer and its biggest exporter, responsible for an estimated 5% of the country's GDP.
The Polish government helped underwrite the move to the tune of ~$82 million in subsidies. Ireland is demanding the European Commission explain why it approved the deal and may seek some recompense of its subsidies to Dell.
Dell said offloading the Lodz facility to Foxconn would "strengthen the company's long-term position in Europe, the Middle East and Africa" and simplify its global operations.
The deal is subject to regulatory approval.
Dell is pulling out of a state-subsidized plant in North Carolina too.
Published December 3, 2009 Reads 1,171
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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.
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