David Frink, Dell spokesman with the company’s corporate headquarters in Round Rock, Texas, said the plant, originally scheduled to shut down in January, will remain open through April.
Frink said the delay is due to an unexpected uptick in business in recent weeks.
“We’ve seen some signs of improving demand for our products in some of our customer segments, and we need to supplement the work being done in our other factories for the short term in order to meet customer needs,” he said.
He said employees were notified of the decision on Friday afternoon.
Looking to save $4 billion corporatewide amid a slumping market, Dell initially announced in October it would close its Triad desktop computer manufacturing plant in January, putting 905 people out of work. The last day of work for about 400 of the employees was Nov. 18, leaving more than 400 remaining workers.
Frink said the remaining employees will be given the option to leave on the original January date and still get the promised severance packages. Employees choosing to stay through April will get an extra retention bonus in addition to already-promised severance packages, he said.
Dell committed to build the North Carolina plant five years ago, lured by the largest combined state and local incentives package in North Carolina history. State officials and business leaders, enticed by the prospect of landing a high-tech company that could offset job losses in the struggling furniture and textile industries, offered incentives totaling more than $300 million to be phased in over several years. Dell already received some incentives payments from the state, Winston-Salem and Forsyth County.
State officials estimate they will recover about $1.5 million of the $8.5 million that has since been provided to Dell.
Winston-Salem Mayor Allen Joines said he also expects local governments to recover about $26 million floated to Dell.
jfeeney@hpe.com | 888-3537
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