Dell will provide better services to its European, Middle Eastern and African customers

Dec 2, 2009 12:55 GMT  ·  By
Dell will improve its services in Europe and the EMEA region by transferring ownership of its Lodz manufacturing operation to Foxconn
   Dell will improve its services in Europe and the EMEA region by transferring ownership of its Lodz manufacturing operation to Foxconn

Dell will solidify and improve the efficiency of its global operation by transferring and aligning its Polland Lodz manufacturing operation to Foxconn Technology Group. This will allow Dell to further increase the quality of the services provided to its European and Middle East and African (EMEA) customers, while still continuing to source notebook computers, servers and storage systems via Foxconn. As such, the company will become a customer of the latter's manufacturing services in Poland, but will also combine its state-of-the-art manufacturing with Foxconn's environmentally friendly manufacturing expertise, effectively improving the quality of service as a whole.

“Extending our relationship with Foxconn allows us to help customers grow and succeed by making the most of their IT investments, in a way they’ve come to expect from Dell.” Sean Corkery, vice president, Dell supply-chain operations, said. “We’re pleased that Foxconn recognizes the knowledge and skills of the Dell Lodz employees and will continue to rely on them to fulfill customer requirements and grow the operation.”

Dell hopes to provide improved services to the aforementioned regional customers through its broad and growing range of top-end performance computer systems. Naturally, the agreement is subject to European Union regulations and the closing process will require EU approval. Still, the contract specifies that the current Lodz employees will retain their jobs when Foxconn takes charge of the plant, which makes it all the more probable that the two companies won't have a very hard time closing the deal.

Foxconn is the world's largest joint design-and-development-services provider of electronics. Dell will naturally benefit greatly from this agreement, especially considering the fact that its sales in the area of Warshaw, Poland will not suffer in the slightest from this deal.

Dell is naturally interested in maintaining a prominent role as a high-quality service provider. The company was ranked No. 1 in Technology Business Research's 2009 Corporate Sustainability Index Benchmark Report and ships about 140,000 systems per day on average (more than one every second). Considering that Dell is the preferred desktop and laptop provider of enterprises in the US, it is likely that the enterprise might want a similar position in Europe as well.