The Channel logo

News

By | Joe Fay 4th December 2009 10:56

Dell offloads Polish factory to Taiwanese manufacturer

Yes, the Polish plant they shut Limerick for

Dell is offloading its factory in Poland to Taiwanese knock 'em out giant Foxconn, less than a year after axing most of its Irish workers and shifting their jobs to the East European facility.

Hon Hai Precision, Foxconn's parent, has reportedly agreed to take over the factory in return for around $310m.

A Dell Poland spokesperson told AFP that the deal would make little difference to production at the plant. Dell will continue to source PCs from the place.

The latest deal will raise questions over exactly how committed to European manufacturing Dell is. Its decision to effectively pull out of Ireland with the closure of its Limerick facility caused massive political fallout in the country, which was already grappling with an economic disaster.

Dell was the Republic's biggest manufacturer in Ireland, and the retreat cost the local economy €117m and the government €173m in lost tax and social insurance contributions.

Still, the European Commission handed Dell €54.4m in aid for the Polish plan in September, AFP reports.

And last week, the EU sent €14.8m to Limerick to tide the stricken town over while it copes with the loss of the Dell jobs. ®

comment icon Read 20 comments on this article alert Send corrections

Opinion

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
Steve Bennet, ex-Symantec CEO

Chris Mellor

Enormo security firm needs to get serious about acquisitions

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust