Thursday January 8, 10:45 AM
Dell closing Ireland plant with loss of 1,900 jobs
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DUBLIN (AFP) - US computer giant Dell (NASDAQ: DELL - news) said Thursday it was closing its main plant in Ireland with the loss of 1,900 jobs and moving production to Poland.
The move is a fresh economic body blow for Ireland, the former Celtic Tiger that was one of the first eurozone members to fall into recession amid the global downturn following last year's credit crunch.
"Dell will migrate all production of computer systems for customers in Europe, the Middle East and Africa from Limerick to its Polish facility and third-party manufacturing partners over the next year," Dell said in a statement.
Dell, which has been hard-hit by the economic slowdown and increased competition, last month announced a major reorganisation of its worldwide operations.
The Dell factory in Limerick was set up in 1990 and was one of the jewels in the crown of Ireland's so-called Celtic Tiger economy, employing 4,500 people at its height.
Dell remains Ireland's biggest exporter, accounting for five percent of gross domestic product.
Sean Corkery, the company's vice-president of operations for Europe, the Middle East and Africa, said of the Limerick closure: "This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers in the region."
Dell said its "Global Innovation Solutions Centre" and other facilities would remain in Limerick despite the factory's closure, and it would continue to operate sales and marketing operations in Dublin.
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