Almost one year after closing the factory in Winston-Salem, North Carolina, Dell set up a new manufacturing and operations center in China.
The new center is located in Chengdu in the west and is scheduled to start operations in 2011. The total number of employees will gradually increase to 3,000. In addition to production, the Dell Chengdu Operations Center will also be responsible for sales and customer service, mainly for the Southwest China market.
This is Dell's second operation center established in China after the Xiamen Operations Center. Dell's Xiamen Operations Center includes two computer production bases, a corporate service command center, and a Dell International Service Center. In addition, Dell has established a global product design center in Shanghai, which is Dell's largest design center in the world outside the United States.
It turned out that Dell did not outsource much of its production as it has in the past. After all, its own factory was more assured. In October 2009, when Dell announced the closure of its North Carolina plant and outsourced some of its production capacity to Mexico and other countries, the rumor that Dell would shut down more factories was once rampant. on.
The closure of the North Carolina factory had caused litigation in the local area because more than 400 people lost their jobs. However, Dell has implemented a firm decision, which is part of its annual operating expenses reduction of 4 billion US dollars. At the same time, the list of Dell's shut-down plants includes two other assembly plants in central Texas and Nashville, Tennessee.
It now appears that Dell will transfer more production functions to China. For a manufacturing company that is in urgent need of reducing production and operating costs, but not losing market share, this is the best choice for setting up a plant. "Compared with Xiamen, Chengdu has its own advantages in terms of labor costs and other aspects." Said Dai Yi, president of Dell Greater China. After the Chengdu Operations Center was put into use, Dell's production base in Xiamen could better serve other regional markets in China as well as international markets.
These are not all the reasons why Dell set up its new factory in Chengdu. Consulting agency IDC expects that by 2014, the annual growth rate of demand for computer products in western China will reach 21%, which is another consumer center in the Chinese PC market after economically developed regions and coastal cities.
Before Dell, there were people in the southwestern region who had already taken the lead.
At the end of December 2008, HP announced the establishment of a new computer production base in Chongqing for the production of desktop and notebook products.
The plant at Chongqing Xiyong Micro-electricity Park will be Hewlett-Packard's first investment in China's western region, and it will be the largest investment project in Chongqing that year. The project is expected to be put into operation before the end of 2010 and the planned annual output will be 4 million units.
The two PC giants will inevitably begin a new round of melee in China's southwestern market. They have all regarded China as the most important overseas market.
Dell's cost-cutting series of actions
background
In January 2007, when the company’s founder, Michael Dell, regained his position as CEO, the total size of the company's employees exceeded 91.5 million; during the fiscal year of 2008, the company’s operating expenses surged by 49% compared to the same period in the previous fiscal year. The revenue growth rate is only 10%. Dell began a series of large-scale cost-cutting actions.
01 Closes the factory in Limerick, Ireland.
02 announced the closure of three US factories in Winston Salem, North Carolina, Central Texas, and Nashville, Tennessee.
03 Improve the design and production process, adopt more pre-set systems for the manufacture of some products, and give up the prior production according to the order.
04 The Polish factory was sold to Foxconn, a subsidiary of the Hon Hai Group.
05 Combines the two departments of SME products and consumer products into one.
06 Accumulated nearly 10,000 employees.