Dell Opens Factory in Poland

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The PC maker pins growth hopes on Eastern Europe, Scandinavia, Russia and the Middle East.

LODZ, Poland (Reuters)—Dell Inc opened a factory in Poland on Wednesday, its second in Europe, and said it expects growth from eastern Europe, Scandinavia, Russia and the Middle East.

The factory is in the central Polish city of Lodz. The world's second-largest personal computer maker opened its first European factory in Ireland in 1990.

"We see future growth coming from both eastern Europe, Russia and the Middle East," Chief Executive Michael Dell, who is leading a restructuring of the company he founded, told reporters.

Dell last year abandoned its 23-year old direct-sales only sales model and started selling PCs at Wal-Mart Stores Inc in the United States and Carrefour SA in France, Spain and Belgium.

"With our experience with top retailers, Dell can actually gain in the consumer opportunity area," Michael Dell said, when asked if he was worried about a possible slowdown in consumer or corporate spending due to recession fears.

This year it will consider how to expand its new strategy of selling computers through large retailers in the rest of Europe.

"It's up to the retailers we work with when they start selling our laptops," said Dell spokesman Stuart Handley.

He added Carrefour has ruled out selling PCs in central Europe for now, while DSG International  will decide this year about Scandinavia, central Europe as well as the rest of western Europe.

Britain's Tesco is currently considering selling Dell notebooks in its Polish, Czech, Slovakian, British and Irish stores.

In Poland, Dell sells its PCs in the stores of Poland's largest phone and internet firm TPSA TPSA.WA.

Industrywide, global PC shipments grew 16 percent in the third quarter, helped by rising notebook sales at retailers outside the United States, researcher IDC said in October.

But Dell is facing increasing competition from Asian rivals, including Acer Inc. and Lenovo Group Ltd in the United States, which accounts for the majority of Dell's sales.


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