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Sun, Aug 01, 2010 - 12:57 AM EDT  —  AAPL: 257.25 (-0.86, -0.33%)  |  NASDAQ: 2254.70 (+3.01, +0.13%)

Beleaguered Dell closes last U.S assembly plant; axes 905 full-time jobs in NC eschewing tax breaks
Wednesday, October 07, 2009 - 05:00 PM EDT

"Dell Inc. announced today that it will close its plant in Forsyth County by the end of January, cutting 905 full-time jobs, including 600 by mid-November," The Winston-Salem Journal reports.

"The decision comes just two days after the $110 million plant turned four years old," The Winston-Salem Journal reports. "The plant is considered as the largest and highest profile incentive project in Triad history, with Dell eligible for up to $315 million in local and state incentives."

"The closing comes as a surprise since Dell officials touted the 750,000-square-foot plant as its most modern and efficient plant, indicating it would be the last of its U.S. plants it would close," The Winston-Salem Journal reports. "Analysts said that the plant closing does represent the end of U.S. manufacturing for Dell."

Full article here.

WXII12.com reports, "Dell received $281 million in local and state incentives to locate the plant in Forsyth County. According to the agreement, Dell was required to invest $100 million into the plant, create 1,700 jobs by September 2010 and maintain those jobs for 10 more years. If those terms weren't met, the company would forfeit the incentive package."

"'It's a very regrettable announcement. Because Dell is stopping before five years, they have to repay every penny the city has invested,' Winston-Salem mayor Allen Joines said," WXII12.com reports. "The company said it planned to honor the agreements. Joines said the city had invested a total of $15.2 million in incentives."

Full article here.

MacDailyNews Take: Mikey's got the SID part on track, now all he has to do is get to work on GTMBTTS. Hopefully the affected employees will be able to find better employment opportunities as soon as possible.

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Oct 07, 09 - 05:08 pm Comment from: HMCIV

Isn't Apple opening something somewhere near there?

Oct 07, 09 - 05:09 pm Comment from: Keith H.

This would be a much bigger story in Winston-Salem had it not been for two police officers being shot early this morning.

Great timing, Dell. Nice way to bury the bad news.

Oct 07, 09 - 05:10 pm Comment from: Keith H.

@HMCIV

"Near there" would be about 60 miles west of Winston-Salem.

Oct 07, 09 - 05:13 pm Comment from: NCG598

Feel really bad for the employee's. I have been there a few times. Really nice area.

The market is not kind if you only follow.
You pay now or you will pay later; but you will pay.

Sad.....

Oct 07, 09 - 05:21 pm Comment from: Brulek

And give the shareholders back their money???

Oct 07, 09 - 05:47 pm Comment from: critic

This is really kind of sad for America. It wouldn't be so bad if the companies weren't also offshoring the higher end engineering jobs as well.

In the end, I don't know who they expect will be left to buy anything in this country at this rate.

Oct 07, 09 - 05:53 pm Comment from: jaundiced

At least Dell tried to make a US solution work even with the tax breaks. Dell, though, is still second best to Apple. Apple had the good economic sense to bail on the US years ago.

Oct 07, 09 - 06:01 pm Comment from: therepguy

It's time to GTMBTTS at Dell... know who in their right mind wants to buy a Dell after that litter bit of news! One would have to nuts!

Oct 07, 09 - 06:03 pm Comment from: Arnold Ziffel

How I feel for those who are left without jobs.

Meanwhile, Mikey Dell goes about his business of protecting his personal wealth and selling the cheapest

Scheiße around.

Oct 07, 09 - 06:03 pm Comment from: mAc-warrior

SIDGTMBTTS

--mAc

Oct 07, 09 - 06:06 pm Comment from: Hm...

Yup — them there tax brakes fer Dell stimulationed the heck out the Winston economy. And it didn't even take 'em the whole ten years.

Not only the unfortunate 905 who are losing their jobs, but the people of Winston and NC who are inheriting this boondoggle are screwed, too. Hopefully, something productive can be done with the facility.

Oct 07, 09 - 06:13 pm Comment from: MAPE

Has anyone seen Michael Moore's latest movie?

Oct 07, 09 - 06:14 pm Comment from: iLuvMyMacs

It's NEVER good when our people loose jobs regardless of what company they are affiliated with. Let's all hope they find meaningful employment soon.

It's still bothersome that our technology is developed here and then manufactured "over there". Yet we complain and scoff when US Corporations are given tax breaks and incentives.

Oct 07, 09 - 06:18 pm Comment from: MacStorm

More like SOL and running out of options (pun intended).

Oct 07, 09 - 06:19 pm Comment from: Sir Gill Bates

And now they have a 750,000 sq. ft. empty building. Good luck getting something new in it. Panasonic (Matsushita) bailed on my town and left a big ass plant empty. I don't buy their products anymore.

Oct 07, 09 - 06:27 pm Comment from: Deus Ex Technica

@jaundiced:

"At least Dell tried to make a US solution work even with the tax breaks. Dell, though, is still second best to Apple. Apple had the good economic sense to bail on the US years ago."

True if you're talking strictly manufacturing. But Apple is actively creating jobs in the U.S.

Oct 07, 09 - 06:34 pm Comment from: NCIceman

I hate to see jobs lost, especially in my state.

Oct 07, 09 - 06:56 pm Comment from: Frank

Never a fan of Dell products, i still feel for the employees.
Best of luck to each and every one of them and hope they find a new job quickly.

Oct 07, 09 - 07:19 pm Comment from: jaundiced

@Deus:

You're right of course, and it could be very good if the possible 3,000 theoretical jobs actually are created. Still, there have been far too many bad job reports overall in the US. The data center is great for NC job creation, but for the US it's hardly a blip.

If you're an Apple fan like most of us here are, though, the data center promises some good things ahead.

Oct 07, 09 - 07:23 pm Comment from: Hg Wells

Yes. A reminder of the sadness in this country with manufacturing moving overseas. It is increasingly hard to find American made products in stores here. They are normally good quality, if more money. I buy American when I can. When a country no longer makes its own goods, it does lose a sense of pride it had once. I have seen this in other countries where little, if anything, is made in that country. And there are already so many people out of work here. I hope everyone, at Dell and elsewhere, find jobs.

Oct 07, 09 - 07:26 pm Comment from: silverhawk

Let's hope the the state, counties and cities of NC don't ever buy a Dell product again.

Oct 07, 09 - 07:28 pm Comment from: Tom Strong

Welcome to the Obamanation! Regulating jobs right out of America!

Oct 07, 09 - 07:58 pm Comment from: ignobilitor

Tom Strong,
If you really believe that this is due to Obama adminstration policies, then you're a bit of a fool.

Cheers!

Oct 07, 09 - 07:59 pm Comment from: Barry Coyle

yeah...nice one.... Obama is responsible for moving industry offshore. Read a freaking newspaper, other than kool-aid drinker daily. Apple should use their high profit margins to begin a new industrial base in the US. They're always setting trends, maybe they could put this sway to good use. Patriotism is so loosely tossed around today. I'm a mac head, but at least Dell had manufacturing in the states.

Oct 07, 09 - 08:52 pm Comment from: dave smith

I make things here in the united states. But I get literature from the government, tax incentives even, telling me it will be cheaper and more profitable for me to move my business offshore. But I can't get myself to do it...

Don't get an electronic engineering or software tech job, those are moving to India as well. America is soon going to be a second rate country. China will be number one in 7-13 years...

This is not new, been happening since Reagan took office. Thanks to both parties. Clinton signed NAFTA, GATT and put into existence the WTO. You can thank congress for the current mess we find ourselves in as well..

Oct 07, 09 - 08:54 pm Comment from: The Other Steve

On the plus side, the local and state government is getting a $281 million shot in the arm from Dell.

Loosing jobs isn't good, but there have been many many instansences where an area lost a lot of jobs and didn't get $281 million back.

To be fair, I don't believe Apple has ANY manufacturing jobs left in the U.S.

Oct 07, 09 - 09:00 pm Comment from: montex

Tom Strong

That's right. In less than 9 months in office, the fantastic, all-powerful Obama has off-shored the entire US manufacturing base. He's so powerful, in fact that he began this process way back in the '80's with massive deregulation of American corporations - long before he ever held office! I can see why you are so frightened of him.

Seriously, though, you are so blind by your (racist?) hatred of the man that you can't wait to blame everything on him. You make yourself and your party look extremely foolish and partisan. Perhaps if you would try to be part of the solution instead of the problem then something positive could be done.

Oct 07, 09 - 09:07 pm Comment from: silverhawk

@dave smith

Please provide me with the website or where ever your "literature" comes from. I'd like to read up on this issue.

Oct 07, 09 - 09:10 pm Comment from: mike

"To be fair, I don't believe Apple has ANY manufacturing jobs left in the U.S."

Last I checked, USA was a developed country. Why on Earth do you guys want these low-end jobs. Working in a Factory, on a production line for motherboards? Yikes...

Oct 07, 09 - 09:40 pm Comment from: Buster

@Tom Weak.....

Dork

Oct 07, 09 - 10:11 pm Comment from: Anonymous©

The state is not getting $281M back, it's getting something like $15M. Most of the incentives were tax rebates, that would be given during the 20 years or so.

Oct 07, 09 - 10:13 pm Comment from: Pony rd

GTMBTTS?

Oct 07, 09 - 10:16 pm Comment from: Gary

Don't gloat. Apple is using Chinese near-slave labor to assemble Macs. You Mac may have been assembled by a 12 year old girl at the end of her 12 hour shift.

Oct 07, 09 - 10:24 pm Comment from: Buy Now

Buster calling other people dorks?

The guy who makes a crowbar look intelligent

Oct 07, 09 - 10:44 pm Comment from: Ottawa Mark

@pony rd,

GTMBTTS = "Give the money back to the shareholders". It's a reference to a flippant reply Michael Dell gave back in 1997 when asked what he would do if he was running the (then) beleaguered Apple:

http://news.cnet.com/Dell-Apple-should-close-shop/2100-1001_3-203937.html

Oct 07, 09 - 11:15 pm Comment from: dave smith

Here is some information about incentives to move jobs overseas:

Taxes: Current law allows companies to defer paying taxes on their overseas income indefinitely while deducting many of the expenses associated with moving offshore – this provides a double subsidy to U.S. companies that ship work overseas, effectively penalizing those companies that keep jobs in the U.S. Ending overseas tax breaks would generate an additional $7 to 12 billion a year in tax revenue and eliminate the perverse incentive to move work abroad to avoid paying taxes.
Public Contracts and Subsidies: Many companies that ship work overseas receive billions of dollars worth of government procurement contracts, subsidies and state and local tax abatements. These taxpayer-financed benefits usually come with very few strings attached, allowing companies to skim additional profits by performing publicly funded work overseas. Laws at the local, state and federal level should be reformed to ensure our taxpayer dollars are not subsidizing the destruction of American jobs.
Currency: A number of U.S. trading partners – China in particular – manipulate the value of their currency relative to the dollar to give their exports to the U.S. an artificial cost advantage, while making American products more expensive. This puts American producers and workers at an impossible cost disadvantage, effectively shutting them out of export markets and undermining their competitiveness at home. The U.S. must take immediate and aggressive action to ensure that the dollar is appropriately valued and withdraw trade benefits from countries that insist on manipulating their currency to unfair advantage, in violation of international trade rules.
Trade Laws: Domestic trade laws enable the government to redress unfair trade practices that give an illegitimate advantage to overseas production. These laws were intended to provide the first line of defense for American producers and workers, yet they are very poorly enforced. The World Trade Organization has weakened our ability to use these laws, and on-going trade negotiations may undermine these laws even further. We must vigorously enforce our domestic trade laws, defend them from challenge, and work to strengthen them in the future.
Trade Agreements: Trade deals such as the North American Free Trade Agreement (NAFTA) create new rights, but no responsibilities, for companies that ship jobs overseas. NAFTA contains strong legal protections for companies investing abroad and guaranteed access for their products into the U.S. market. But NAFTA provides no comparable protections for the rights of workers and the environment, allowing companies to escape their international obligations by shipping work overseas. We must fundamentally reform flawed trade rules to hold companies accountable for respecting workers’ rights no matter where they produce.

No, I don't have any openings right now sorry..

Oct 07, 09 - 11:54 pm Comment from: Raskol

"democracy" in action.

Capitalism is your religion. Now pray tools!

Oct 08, 09 - 02:14 am Comment from: I HATE DELL

That not Dell last assembly in the US . They still have one plant in Austin, TX. They still have the one plant that makes the server for them. We use to call the place the Palmer projects cause of the three plants that was so close together. There was Palmer one that made servers, Palmer 2 that use to do computers and labtops and Palmer 3 that Dell didn't really own, but lease out to company that will buy the parts for Dell. When Dell need like 10,00 hard drives that day they will order from palmer 3. Which was holding all Dell supplies. That's why Dell can sell it computers so cheap cause they really don't have any supplies on hand. They will just order what they need for that hour for what they was building. So if an order of 100 computers for what like a hospital or something. They will call down to the company that was holding the supplies for them and they would have it send to the docks at Dell. The only problem with this type of system. If the supplies didn't make it in time before the assembly line goes dry. Dell was screw for the day. I know how those people in NC plant are feeling, cause some of those people are friends of mine who move from Austin, tx to North Carolina to just keep their jobs with Dell. DELL YOU SUCK ASS. We try to tell you something but you didn't listen. I hope you pay that town their money, but like true form you will find a way out of it you bottomfeeder

Oct 08, 09 - 04:04 am Comment from: enzos

@MDN: eschew = deliberately avoid using. The word you are looking for is forfeit (lose as a penalty for wrongdoing). Pick up your game, bozos, and check with a dictionary if in doubt.

Oct 08, 09 - 06:27 am Comment from: Doc

I think Apple should buy Saturn from GM, now that would be a yankee doodle kick ass American business move

Oct 08, 09 - 09:02 am Comment from: Big Als MBP

Why doesn't Apple move all their manufacturing to the southern states?

They could hire the homeless. Feed them Cantonese Hot Pot and have them live in dorms. Pay them $50 per day and protect them from the evils on the other side of the dorm walls.

I think it would work and it wouldn't hurt the bottom line.

What's good for unwed Chinese women is good enough for the homeless.

Oct 08, 09 - 09:18 am Comment from: Macdoc

Michael Moore is a turd...you don't see him refusing the millions he makes from his anti-America "commie" movies.

Oct 08, 09 - 09:48 am Comment from: sn

MDN, you need to change your title. This isn't Dell's last plant in the US, it's the last plant they're going to CLOSE in the US. It says so in the article.

How many US assembly plants does Apple have? I thought my Mac was made by cheap Chinese labor.

Oct 08, 09 - 09:59 am Comment from: JW

When I first bought a Dell it was made in Texas and never had a problem with it or technical support. Over the years I bought additional Dell computers and the quality difference was evident. I had nothing but trouble with them. When I had to use technical support it was located overseas and the support was taken over by script readers, which didn't no what they were doing. There answer for most problems was format the drive. I will never buy Dell again, and I think that closing the last of the US plants is a huge mistake.

Oct 08, 09 - 10:13 am Comment from: Noodlefarmer

It's not fair to blame this one on Obama. There's enough other stuff to blame on him. But the liberals seemed to blame pretty much everything bad that happened on Bush.

Oct 08, 09 - 10:43 am Comment from: Dude

Karma, she's a you know what and has a sense of humor to boot.

Oct 08, 09 - 02:24 pm Comment from: Samuel Johnson

Soon all those who spell "lose" as "loose" will be fired and/or transported to some country that pays salaries of two cents a day.

Oct 08, 09 - 06:10 pm Comment from: Mark

So are these lost jobs being outsorced to a foreign country? If so, I think it's time Americans started thinking like they belong to a union and do the things unions did in the old days to get their way.

Oct 08, 09 - 07:58 pm Comment from: Sac

I'm from india and I source products from China / Taiwan. Things are not exactly great on the outsourcing front. Lots of call centres have shut shop in india in the last couple of months. Similarly lots of people have lost jobs in china because the orders are just not coming and inventory is just piling up. It's just the state of the world economy.

Oct 09, 09 - 05:48 am Comment from: Macdoc

@F. Maxwell

Gov. can't keep failed businesses open just to save jobs...
Mike Dell makes money because he had the balls to start his OWN business just like Jobs, Gates, etc...

Rich executives as you put it keep this country working by starting businesses and creating jobs. Go take an economics class and stop the class warfare.

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