Newspaper article THE JOURNAL RECORD

Dell Moving Some Computer Manufacturing to Nashville

Newspaper article THE JOURNAL RECORD

Dell Moving Some Computer Manufacturing to Nashville

Article excerpt

NASHVILLE, Tenn. (Cox) -- With its eye on making speedier deliveries to East Coast customers, Dell is transferring all production of its consumer and small business computers to Nashville, beginning this summer.

The move into Nashville with a regional campus is Dell's first U.S. expansion outside of central Texas and a major strategy shift designed to increase the company's share of the consumer PC market - - a segment it only got serious about within the past three years. Dell is expected to spend some $200 million on office and manufacturing space in Tennessee.

Dell officials said they immediately will begin hiring the first of at least 600 assembly and 400 technical-support workers it expects to employ in Tennessee by year end. The company said the number may grow to 3,000 over the next five years. But executives at the Round Rock-based company were quick to point out that transfer of the operations wouldn't have a major impact in north Austin, where its Dimension PCs aimed at consumers and small businesses are made now. The estimated 3,000 workers involved in assembly, technical support and service of the Dimension will be offered training for new positions in the Austin area, said spokesman Peter Scacco. The Dimension assembly operations in north Austin will be converted to manufacture other products, such as Dell's two notebook lines and its OptiPlex PC for corporate customers, Scacco said. With more than 18,000 workers in central Texas, Dell is the region's largest private employer. In Nashville, Dell Vice Chairman Kevin Rollins estimated that about 15 Dell executives and managers who are intimately familiar with Dimension production will be asked to move to Tennessee. The remaining jobs will be filled locally. In addition to its strong work force, a quality of life similar to Austin's and at least $40 million in government incentives, Nashville was attractive because its location allows Dell to ship computers within a day to the eastern half of United States, where the majority of the country's population lives, said Paul Bell, Dell's senior executive for the home and small business group. …

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