Dell Moves Irish Manufacturing Opers To Poland, With 1,900 Job Losses

U.S. computer and information technology company Dell Inc. (DELL) Thursday said it is moving its Irish manufacturing operations to Poland by early 2010, with the loss of 1,900 Irish jobs.

The company, which established its manufacturing facilities for Europe, Middle East and Africa in Ireland in 1990, said the move is part of a $3 billion companywide cost-reduction initiative revealed last year.

Dell said 1,300 sales and marketing jobs will remain in Dublin, as will 1,000 Limerick-based jobs in logistics, solutions, procurement, engineering and product development. "Limerick will remain the logistics hub for Europe," a spokeswoman told Dow Jones Newswires.

Sean Corkery, vice president of EMEA operations, said in a statement: "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."

Ireland provides an attractive 12.5% corporate tax rate for multinationals based in the country, but Dell said the transfer of operations aims to simplify operations, improve productivity and reduce costs.

Economists say the move is another sign that the Irish economy, fueled by the twin engines of a construction boom and multinational investment since the 1990s, is losing its edge to cheaper Eastern European countries.

Alan McQuaid, economist at Bloxham Stockbrokers, said the level of job cuts is disappointing. "If you're starting to lose jobs in multinationals it doesn't auger well for the economy as a whole," he said. "This is a warning that we need to remain competitive."
Source:By Quentin Fottrell, Dow Jones Newswires
money.cnn.com

Poland's car industry warns PM of possible crisis

Polish car makers have asked the prime minister to take steps to protect the domestic industry from a worldwide drop in demand, an industry representative said Tuesday.

Poland's Chamber of Automotive Industry head Roman Kantorski told The Associated Press that representatives of car dealerships and auto parts producers have written to Prime Minister Donald Tusk urging him to consider steps to cushion the sector against recession. They suggested government guarantees for bank credits and flexibility in saving specialized jobs.

Kantorski said the letter was a precautionary step, but acknowledged that some auto part makers are considering layoffs. He refused to say which firms might make cuts.

Some 97 percent of Poland's car production is exported to markets where demand is falling.
Source:The Associated Press

Denmark backs Poland on EU milk quota hike: minister

WARSAW (Thomson Financial) - Poland has the backing of Denmark as it pushes for a 5.0 pct increase in EU milk production quotas, rather than the 2.0 pct proposed by Brussels, Agriculture Minister Marek Sawicki said on Monday.

'I'm happy to we have Denmark's support for the 5.0 pct rate,' Sawicki told reporters after a meeting with his visiting Danish counterpart Eva Kjer Hansen.

Hansen confirmed that Denmark was in favour of Poland's position that the EU milk market should be opened up more rapidly than planned in an existing draft proposal by the the 27-nation bloc's executive body, the European Commission.

Source: forbes.com

Lenovo heads to Poland

Lenovo has bucked the Far Eastern trend and announced plans to open a $20m manufacturing plant in Poland in Q3 next year.

Unlike other vendors, which are uprooting to make use of cheaper labour in the Far East, Lenovo plans to use the 30,000 square metre plant and accompanying fulfillment operations center to support customers across EMEA. It will employ around 1,000 people once complete.

With a capacity to produce over two million desktop PCs a year, additional services will include product assembly and configuration, distribution services and logistics and labelling.

Gerry Smith, senior vice president global supply chain at Lenovo, said: "Our new plant in Poland is an example of Lenovo’s worldsourcing strategy in action. In a world with just one time zone -‘now’ - Lenovo must source materials, assemble managerial and technical talent, and concentrate logistics, infrastructure, and production wherever they are best available – in this case, Poland. This new plant brings our manufacturing operations closer to our European customers, enabling Lenovo to better optimize its supply chain, enhance its competitiveness and serve our expanding customer base in this region.”

Milko van Duijl, president of Lenovo EMEA, said: " ”Selecting Poland as the location for Lenovo’s European manufacturing facility – featuring Lenovo's best-in-breed manufacturing processes – is a significant step in demonstrating our increasing presence in Europe and our strategy to grow in this market. To develop a state-of-the-art facility in Europe focused on improving the customer experience, Lenovo is leveraging its 'worldsourcing strategy,' that enables us to recruit the best local talent and international management where they are.”

Source: vnunet.com