Dell’s Irish plant under threat

Dell’s Irish production plant could be shut as part of the PC vendor’s reported plans to sell off its assembly plants, according to a report in the Wall Street Journal.

The Limerick facility employs 3,000 workers, but sources close to events told the newspaper that Dell is keen to transfer production carried out at the factory to Poland.

Reports emerged earlier this month that Dell is in talks to sell off its plants to contract manufacturers in a bid to cut costs - something the vendor has yet to openly confirm. But it is thought the vendor would encounter problems finding buyers for factories situated in developed countries, including Ireland, and may simply opt to close them.

According to the article, the goal for Limerick is to move production capacity to a recently opened factory in Poland. The paper said Dell executives have privately discussed closing the plant for two years, citing sources with knowledge of the discussions.

Dell also employs over 1,000 office workers in Ireland, but these positions are not thought to be under threat.

The vendor opened the Limerick plant in 1991, lured by the country’s low rate of corporate tax and generous grants. Rising labour costs in Ireland have, however, diminished its appeal as a manufacturing base.