The future of Dell Computer in Ireland is secure for at least the next 10 years, and is unlikely to fall victim to the same fate as the Apple Computer plant in Cork where jobs cuts were announced this week, the company's chairman and chief executive officer, stated yesterday.
"Dell is here, and we are not leaving," said Mr Michael Dell during a visit to Limerick. He added that the labour-intensive, low-value nature of Apple's production process contributed to the job losses in Cork.
"There is an element of labour in our factories, but they also feature customer-specific information. "Ours is more than a let's-put-the-boxes-together factory. Our predominant costs are materials, so we are not chasing low labour rates. As it stands nobody has a lower cost structure than Dell." Mr Dell was speaking before the unveiling of the foundation stone for Dell's third European manufacturing facility in Limerick. The $90 million (€79.73 million) development is expected to create 1,700 new jobs at Raheen Industrial Estate over the next few years. It will bring Dell's Irish workforce to 5,850.
Dell is currently the fastest-growing PC manufacturer in Europe, recording growth in excess of 100 per cent last year. The Minister for Public Enterprise, Ms O'Rourke, commended Dell's strategy of direct selling, and its use of the Internet to generate daily sales of $10 million. This represents 20 per cent of Dell's revenues and Mr Dell has said he expects it to account for 50 per cent within five years.
