Dell considers second factory in Europe

Dell is considering opening a second European production plant to support its steady growth on the continent.

Dell is considering opening a second European production plant to support its steady growth on the continent.

The US computer maker is looking to expand beyond its manufacturing plant in Limerick, Ireland, to help meet growing European demand for its computer products, a company spokesman said.

The new European plant would follow a move last month to add a third major manufacturing facility in the US. The North Carolina plant joins manufacturing operations in Texas and Tennessee.

Dell also operates production facilities in China and Malaysia.

The spokesman declined to comment on where the European plant would be located and when it would go into operation.

Speculation about France being the preferred site swirled after Michael Dell noted that this was the only country in "the top 10" where a competitor, Hewlett-Packard, is number one.

Some analysts view high-cost France as a highly unlikely contender.

"If you're interested in keeping your cost structure down, it makes no sense to open a plant in France," said Brian Gammage, principle analyst at Gartner.

"In fact, it's difficult to see how Dell could incur anything apart from disruption by trying to add additional capacity in Western Europe."
Gammage points to Eastern Europe as a more likely contender.

Demand for computers is growing steadily in this region and local labour costs are much lower to those in Western Europe as well, according Gammage.

"Most of Dell's leading competitors are already manufacturing the majority of their desktop in either the Czech Republic or Hungary," he said. "These markets already have a well-trained workforce."

John Blau writes for IDG News Service

Read more on PC hardware

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close