Dell To Migrate Manufacturing Operations From Ireland To Poland By Early 2010

Dell Corporation has announced that it plans to migrate all production of computer systems for customers in Europe, the Middle East and Africa (EMEA) from Raheen, Limerick to its Polish facility and third-party manufacturing partners over the next year.

The manufacturing migration will be completed in a phased transition during 2009 and is among a series of steps Dell is taking to simplify operations, improve productivity, reduce costs and deliver even higher levels of customer satisfaction.

The move is part of a $3 billion cost-reduction initiative the company announced last year and is being made as a result of an ongoing comprehensive review of Dell's global supply chain.

"We are proud of our 18-year tenure as a major manufacturer in Ireland," said Sean Corkery, vice president of operations, EMEA. "This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers in the region."

Dell expects to reduce its Limerick manufacturing workforce by about 1,900 employees over the next 12 months. The initial release of employees will occur in April, with the full transition expected to be completed by January 2010. Affected workers will receive a competitive severance package and career outplacement assistance as they transition from the company.

"We will treat affected employees with dignity and respect and offer them every practical support through this extended transition period to minimize the impact on them," said Mr. Corkery. "We appreciate the support from the Irish government and the people of Limerick over these many years."

Dell's employees in Limerick will continue to coordinate EMEA manufacturing, logistics and supply chain activities across a range of functions including product development, engineering, procurement and logistics. The company's Global Innovation Solutions Center and EMEA Command Center will remain in Limerick. Dell continues its significant sales, marketing and support activities in Cherrywood, Dublin.

Following the announcement, the Tanaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan T.D., said that she was deeply disappointed by the decision.

"My immediate thoughts and concerns are for the workers and their families and those directly impacted. In that context, I had already tasked the relevant State Development Agencies to work together and prepare for any major job losses. This Group will immediately engage with Dell with a view to providing every possible assistance to the workers that are due to be made redundant.

"In my discussions and meetings with Dell, it was always made clear to me by the company that any decisions that it would take, were in no way a reflection on the quality its workforce or the operating environment in Ireland.

"I recognise that a fundamental change in its business model was considered necessary by the company to enable it to continue to compete in the global market. A successful Dell is in our interests, as even with this level of redundancies, Dell remains a major employer in Ireland and a major contributor to the economy. My Government and IDA Ireland will continue to engage with Dell, as we do with all companies located here, with a view to attracting other functions and investments from the company", the Tanaiste said.