Dell offloads EMEA PC factory to Foxconn

Ongoing efforts to simplify operations and cut costs sees PC plant sold to Foxconn

Tags: Dell CorporationDesktopsFoxconn Technology GroupHon Hai Precision Industry CompanyServersTaiwanUSAUnited Arab Emirates
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Dell offloads EMEA PC factory to Foxconn Dell’s EMEA PC and storage systems factory in Poland is being taken over by Foxconn.
By  Andrew Seymour Published  December 3, 2009

The Polish manufacturing plant that Dell uses to build computers for markets in Europe, the Middle East and Africa is being sold to Foxconn Technology Group, the PC vendor confirmed yesterday.

Dell insists the transfer will simplify its global operations and bring more efficiency to the business, allowing it to provide "even greater value" to customers in EMEA.

Following the move, Dell will continue to source desktop and notebook PCs, servers and storage systems from the Lodz facility, via Foxconn, which is part of Hon Hai Precision Industry Co., Taiwan's largest electronics maker.

Once the transfer of ownership is finalised, it will effectively become a customer of Foxconn's manufactirng services in Poland, the vendor said.  

"Extending our relationship with Foxconn allows us to help customers grow and succeed by making the most of their IT investments, in a way they've come to expect from Dell," said Sean Corkery, VP of supply chain operations at Dell.

Existing Dell staff based in Lodz will continue in their roles when Foxconn takes control of the operation. Around 1,600 workers are understood to be employed at the plant.

"We're pleased that Foxconn recognises the knowledge and skills of the Dell Lodz employees and will continue to rely on them to fulfill customer requirements and grow the operation," commented Corkery.

Reports from Asia suggest the purchase could have cost Foxonn anything up to US$310m, although neither company has disclosed the financial terms of the deal.

The sale is the latest in a series of moves that Dell has made to reduce manufacturing costs as it looks to maintain pace with rivals that already outsource all or the majority of their hardware assembly, such as HP and Acer.

Earlier this year, Dell announced plans to migrate all EMEA PC assembly from Ireland to its Polish facility and third-party manufacturing partners.

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