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Dell May Spend More Than $100 Billion to Widen China Operations
Sept. 16 (Bloomberg) -- Dell Inc. plans to spend more than $100 billion over 10 years to broaden operations in China and capture more sales in the world’s second-largest economy.
The company will open a second China operations center next year in Chengdu, adding production, sales and support in the western part of the country. It will also add an office and as many as 500 workers at its existing Xiamen site, the Round Rock, Texas-based company said in a statement.
Last year’s sales increased in the Asia-Pacific region for Dell at a faster pace than other parts of the world. Still, the company got only 12 percent in its business revenue last year from Asia-Pacific, according to data compiled by Bloomberg.
The manufacturing and customer support center in Chengdu will begin operations in 2011 and may eventually employ 3,000 people, the company said. It didn’t elaborate on how it intends to spend the $100 billion.
Dell fell 3 cents to $12.27 at 12:08 p.m. in Nasdaq Stock Market trading. The shares had fallen 14 percent this year before today.
Dell said it’s the No. 2 supplier of PCs in China and that it posted a 52 percent revenue increase in its most recent fiscal quarter.
dacare This entry was posted on September 17th, 2010 at 03:30:07 am by dacare and is filed under Investing in China.