PC builder and retailer Tiny's manufacturing shift to the UK will drive down its PC prices allowing it to compete better with rivals Dell and Compaq, the company claimed. It unveiled plans last week to move its manufacturing plants for the UK market from China to Scotland.
The announcement came just seven days after rival Gateway announced it was withdrawing from the UK market.
In the same week, Tiny declared a push into the small to medium sized enterprise sector, using capital gained from the £8m sale of its Tiny Online internet service provider arm to Italian web firm Tiscali.
Paul Kemp, business projects director at Tiny, said: "We always push for the best prices in the market, and have always competed with Dell and Compaq. By moving to the UK we can develop key technology and ship the product to customers more quickly."
The move will also save money on logistics and create up to 160 jobs, Kemp claimed. No jobs will be lost in the Far East, he added, claiming that the existing manufacturing plant will support Tiny's retail outlets in that region.
Andy Brown, senior analyst at IDC, agreed that the firm had made a wise move. "It makes sense for Tiny to do this because it will save money from a logistics point of view," he said.
He added that Scotland is crying out for investment by IT vendors, and that the move demonstrated Tiny's faith in its home country.
"There will be a cost increase in terms of wages and running the plant in the UK, but the move will save money in the long run," Brown said.
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