Dell Shutting Limerick

WHILE ON THE STREETS of Limerick, I'm holding a copy of the Wall Street Journal with a story about Dell's manufacturing facilities. Nicky Hartery, head of Dell's manufacturing facilities in Europe, tried unsuccessfully to secure extra investment in the Dell Limerick plant before he resigned last month. Hartery has championed Dell in Ireland since 2000 when his cheerleading for the company was splashed across business publications in Ireland. The Journal says that Dell wants to leave the manufacturing business. IDA Ireland is trying to sweeten a deal with Dell, trying to keep the Limerick operation alive. The plant employs around 3000 people and the knock-on effect of Dell closing in Limerick will affect at least 9000 jobs in the surrounding region.

UPDATE: Based on the sound counsel of James Corbett below, it's important to emphasize that Dell's facility in Limerick is profit-making and that implies it will continue operating. It might not be owned by Dell anymore but that doesn't mean it will completely shut down. In fact, experience with manufacturing in Poland hasn't been fruitful for Dell, placing the Irish operation in much higher regard. One thing for sure--the Poles are worried too.

The Sunday Times reported last month that Dell held talks with Foxconn, an Asian contract manufacturer, about taking over its Polish plant. Inside information suggests that plant has major efficiency problems.

Dell plans to slash its unit costs by outsourcing production to contractors. Family members who work for HP have told me that Dell is playing catch-up with a very successful manufacturing line that HP runs in India. Lenovo has enjoyed similar success in China, the most probable location of a new Dell manufacturing facility.

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Justin Scheck -- "Dell plans to sell factories" in the Wall Street Journal, 4 September 2008.
Branedy says Dell won't look like the bad guy if it sells its manufacturing base in Ireland.
Biz Poland -- "Dell shift from Limerick to Lodz"

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