dell.gifDell has officially opened its second factory in China
at Xiamen. Unlike its existing factory, which supplies the domestic
market, this new facility will supply Japan, Hong Kong and South Korea
with the usual range of Dell PCs and servers.

The 594,000 sq ft facility more than doubles the company's production capacity in China.

China
is now Dell's fifth largest business and the firm has worked hard to
get local suppliers to adopt Dell's efficient supply chain and
manufacturing practices. The cajoling appears to have succeeded as last
year Dell purchased nearly $16bn of components and other products from
Chinese suppliers to support its worldwide manufacturing operations.

China
is the world's second largest PC market, behind the US. According to
IDC, 19m PCs were sold in China last year and shipments grew by around
20%. Lenovo is still the market leader with 31% share, Founder Group is second and Dell, the leading foreign brand, is third with 9%.

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