Hon Hai Group Buys Out Dell's PC Production Plant in Poland
The Taiwan-based Hon Hai Group, now the world's largest EMS provider, has decided to buy out Dell's PC production factory in Poland as part of its efforts to venture into the notebook PC manufacturing industry, according to the group.
Although still declining to reveal details of the buyout, Edmund Ding, spokesperson of Hon Hai Group, points out
that the acquisition is scheduled to be completed in the second half of 2010. In the meantime, Dell has also declared the buyout agreement, saying it will continue focusing sales of PCs in the European market through closer cooperation with Hon Hai Group.
Founded in 2007, the PC production factory is as a brand new plant, dedicated to production of Dell-branded desktop PCs, notebook PCs, servers and storage equipment, all of which are shipped to Europe, Africa and Middle East. After disposing of the factory, Dell will still have others in the U.S., Ireland, India, China, Brazil, Malaysia and Lodz of Poland.
Dell, originally known as the largest PC brand in the world, has been outpaced by HP and Acer as the No. 3 at present. Facing sliding global market shares and rising operating costs, the brand has decided to sell off one of its plants in Poland to improve its profit performance.
On the other hand, Hon Hai Group, after gaining Sony's LCD TV plant in Mexico recently, is reportedly to further acquire the brand's another plant in Spain, showing its ambition to lead the LCD TV manufacturing sextor. The group's recent moves have prompted Taiwan's large-sized display panel maker, AU Optronics Corp., to build a new plant of LCD modules in Slovakia to square off the group in Europe.
For sure, Hon Hai Group, if succeeding in acquiring Sony's LCD TV plant in Spain, is expected to maintain a 30% business growth and hold its lead in the global industry of EMS next year, according to institutional investors.
