Dell announces major investment in Chinese manufacturing operations

Dell plans to open a second major China operations center next year in Chengdu with manufacturing, sales and services to support rapid growth in business occurring in western China. Dell’s expansion to Chengdu supports the Western-China Development Strategy (Go-West policy) aimed at developing the country’s inner-western region for trade and commerce.

In addition, the company also plans to open an additional office at its long-standing flagship center in Xiamen and hire up to 500 team members later this year to support its projected growth needs in North Asia and globally.

The announcements are indicative of Dell’s success in China, which is second only to the U.S. in Dell revenue. The company saw revenues increase 11X from fiscal years 2000 to 2010 and reported last fiscal quarter that sales in China grew 52 percent year-over-year. Dell is the No. 2 supplier of computer systems in China with 9 percent share, according to industry analyst firm IDC, which estimates demand for computer systems in western China will grow at a 21 percent annual rate through 2014.

“We’re planning for the future, and we’re excited about our strategic investments in China that will help us better serve the region’s increasing need for technology solutions and services,” said Michael Dell, chairman and CEO of Dell. “Our tremendous growth in China over the past 12 years reflects the dedication of our more than 6,000 talented Dell team members operating there today. We are committed to the success of our new flagship operation in Chengdu and the promise it holds for all our customers.”

Dell is developing its manufacturing and customer support center in the West Chengdu High-Tech Park. The new center is expected to be operational in 2011 and could grow to 3,000 team members over time.

The new Chengdu operation adds to Dell’s significant presence in China, which includes two computer manufacturing plants and an enterprise command center in Xiamen; a global product-design/engineering center in Shanghai – one of Dell’s largest outside the U.S.; and an international service center in Dalian. Dell’s total spend in facilities, employment, research and development and purchases from suppliers in China is estimated to be greater than US$100 billion over the next decade.

“The strong Chengdu workforce and our new operations there will better position Dell for additional growth opportunities in western China,” said Amit Midha, president, Dell China.