POLAND:DELL IS expanding its Polish operation in the wake of the Limerick job losses and has encouraged its 500 Polish employees in Ireland to apply for the new jobs.
With no relocation package or language lessons on offer, a company spokesman admitted that few Irish workers were likely to move to the central Polish city of Lodz (pronounced "woodge").
"A lot of Polish people work for Dell in Ireland and they can apply for all open positions in Poland," said Rafal Branowski, Dell spokesman in Poland. "It's more about Polish people working in Ireland - for them it might be an interesting opportunity."
The writing was on the wall for Dell's Limerick plant since November 2007 when the first Polish-made laptop rolled off the production line in the brand new 35,000sq m plant in Lodz, believed to be the most modern of its kind in the world.
The plant expanded last June, bringing the Polish workforce to 1,800.
Currently devoted to laptops, production in Lodz will be expanded this year to include desktop computers and servers previously assembled in Limerick.
Some of the work will be outsourced to third-party producers, although Dell's own Polish workforce is expected to grow to in excess of 3,000.
Its Polish presence has helped Dell reduce delivery times by two days for western European customers. It has also brought the company closer to central and eastern Europe markets, expected to grow by 14 per cent in the next five years.
Known as an unemployment black spot, Lodz is also a university town producing 20,000 graduates annually.
Salary costs there are one-third lower than Warsaw and an estimated two-thirds lower than in Limerick. But with average industrial salaries in Poland up 20 per cent to €775 a month since Dell arrived in 2006, some suggest the Polish plant may eventually experience a similar fate to its Irish equivalent.
"At the moment, though, for companies like Dell even rising wages are outweighed by advantages of the size of the Polish economy, the market here and nearby," said Marcin Nowicki of the Gdansk Institute for Market Economics.
Many of Dell's Irish-based subcontractors have followed the company to Poland, such as outsourcing company SWS BPO and materials handling company IO Systems.
The Polish foreign investment agency expects investment worth €53 million from these companies.
As Dell expands its Polish operations, the payment of €52.7 million in government subsidies for a new production facility has come to the attention of EU competition commissioner Neelie Kroes.
Her office is examining whether the funding represents legitimate regional development aid or just aid to Dell's market position.
Meanwhile, questions have been raised about Dell's long-term plan in Lodz, with a new company strategy expected to increase dependence on third-party suppliers.
Last October, the Wall Street Journal quoted anonymous company sources who said the Lodz plant would be sold off within 18 months.
Companies in Poland cannot sell assets for five years after receiving government subsidies.