Dell chief executive Kevin Rollins has said that the company's Irish manufacturing operations in Limerick will continue to "meet the needs of customers in parts of Europe" but that an Eastern European manufacturing facility was essential to be "close to customers" in emerging markets.
Speaking at Dell's annual technology day in New York yesterday, Mr Rollins did not provide any further detail on the likely location of the new European factory or how it might affect employment levels in Limerick.
Dell employs 4,500 people in Ireland, primarily in manufacturing in Limerick. It also has a sales and marketing operation in Cherrywood, Co Dublin.
"Our relationship with Ireland has been exceptional and we appreciate the support we have received from the Irish Government and our partners," said Mr Rollins. "However, there are other markets we need to get into. We have to be close to customers in those markets and that is best done by having multiple sites in Europe."
Dell founder and chairman Michael Dell said there was little to add to a statement released yesterday regarding a probe into accounting at the company by the US Securities and Exchange Commission (SEC). As a result of the investigation, Dell said it would delay filing its second-quarter report and would also suspend its share repurchase programme.
"We are fully co-operating with the investigation," said Mr Dell.
When a listed company is late filing its results, a 180-day process begins to delist it from the Nasdaq exchange. Mr Dell said he "fully expected" to get any problems resolved before that deadline.
He also gave a ringing endorsement of Mr Rollins who has come in for criticism as a result of the company's recent disappointing financial performance. The company has failed to meet its own targets for four out of the last five quarters and in July was forced to issue a profit warning to investors.
"I believe Kevin Rollins is an outstanding executive," said Mr Dell. "Characterisations of the company's challenges as only being Kevin's doing are inaccurate. I run the company with him so if you want someone to blame, blame me as well. You are free to speculate [ about his future] but it is not going to happen."
Mr Dell pointed out that the board of directors of the company, of which Mr Rollins is a member, was recently re-elected with 98 per cent positive votes.
