Local News

Dell to offshore jobs from closed N.C. plant

Posted October 16, 2009 9:24 a.m. EDT

— Production at the Winston-Salem plant that Dell Inc. is closing will be moved to Mexico and other countries, according to a federal document.

The High Point Enterprise reported Friday that Dell indicated in a Trade Adjustment Assistance Act petition that the work that has been done in Winston-Salem will be given to third-party providers in Mexico and other countries.

According to the newspaper, the petition states, "Our (Dell's) work volume is being transferred to a global manufacturing network.

"The work will be given to third-party providers who operate in Mexico and other countries around the globe."

Dell said last week it will close the plant, cutting almost 1,000 jobs in North Carolina. The petition allows workers at the Winston-Salem plant to collect additional unemployment benefits.

The plant primarily manufacturers desktop PCs, the market for which has been badly hurt during the global recession.

In worldwide PC sales statistics issued this week by analysis firms IDC and Gartner, Dell fell from second to third place in global market share. Acer is No. 2 behind No. 1 HP. Morrisville-based Lenovo is No. 4.

HP also surpassed Dell as the sales leader in the U.S.

About 600 Dell workers will be laid off in November, officials said. Affected employees will receive severance pay, incentive payments, benefits continuation and outplacement services, they said.

State lawmakers approved a $242 million package of tax breaks and other incentives in 2004 to lure the Texas-based computer maker to North Carolina, and Forsyth County and Winston-Salem kicked in another $37 million in incentives.

Many of the incentives were linked to employment and investment targets over time.

When Dell selected North Carolina for its new plant, the company promised to invest at least $100 million in its plant and create at least 1,500 jobs by 2020. Its 750,000-square-foot plant opened in late 2005 with great fanfare – company founder Michael Dell joined state and local officials at the dedication.

Note: Some information from: High Point Enterprise