Dell to build second factory in China

news
Mar 25, 20051 min

New facility will double Dell's current production capacity in China

Dell announced on Thursday plans to build a second manufacturing plant in southeastern China.

The new plant will be constructed in Xiamen, Fujian province, where Dell already has one factory, according to the company. The new manufacturing plant will produce PCs for Dell customers in northern Asia, including China and Japan, the company said, adding that the new facility will double the company’s current production capacity in China. The company did not disclose what that capacity is.

China is the world’s second-largest PC market, after the U.S., and continues to grow at a healthy clip. According to Gartner, 14.9 million PCs were sold in China last year and shipments grew by 14.9 percent. Dell has the largest market share of any foreign PC maker in China, but rivals IBM and Hewlett-Packard closed the gap last year by growing faster than their rival from Round Rock, Texas, according to market analysts Gartner and IDC.

Despite the best efforts of foreign PC makers, the Chinese PC market continues to be dominated by local players, with Lenovo Group holding the largest share of the market.