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Dell unveils Chengdu site for growth in west
June 6, 2013, Thursday
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DELL'S Chengdu Operations facility officially opens in early June, the second of the company's centers in China to combine manufacturing, customer services and sales at one site.
Dell said the site will form an important link in its global supply chain.
Amit Midha, president of the Dell's Asia-Pacific and Japan regions and chairman of Dell Global Emerging Markets, discussed the regional and national strategies of the company.
What's the history of Dell's investment and development in Chengdu?
Dell has been operating a call center in Chengdu since 2011 - its third call center in China and the first one in western China. In June 2012, Dell celebrated the shipment of its first product manufactured in Chengdu by local partners, including more than 20 of the newest laptops.
The new Chengdu site and the Dell Xiamen Operations Center will complement one another. The new operations center will enhance services to governments, companies and individuals.
Why did you choose to invest in Chengdu?
Dell chose the site because of favorable growth projections and China's commitment to build a world-class supply chain system in Chengdu. That makes it an ideal location to expand our ability to serve the needs of customers in western China and beyond.
Employing the best talent available is a critical factor in Dell's development strategy. In 2012, there were 500 staff working in Dell Chengdu.
They cover not only production, but also research and development, logistics and technology.
Chengdu is a hub in what might be called the "new Eurasian land bridge." It can help us shorten export times to Europe, which is helpful from a global sales standpoint.
No matter which way you look at it - from the viewpoint of supply chain, business development or geographic advantage - investment in western China is of great importance to Dell.
What will Dell Chengdu's development mean to local industries?
Dell is dedicated to promoting cloud computing in Chengdu. We are establishing joint laboratories with educational institutions and providing advanced technologies to local enterprises. Dell is also setting up cloud platform labs in Chengdu for joint testing with companies like China Telecom and Aipu. The Dell Aipu Cloud Computing Center went into operation in December 2012, with initial investment of 50 million yuan (US$7.9 million). That's expected to expand to more than 200 million yuan over time.
How does Chengdu fit into your global strategy?
The Chengdu facility is a world-class operations center and the second in China to gather together manufacturing, customer services and sales. The Dell Chengdu global operations site, in conjunction with the Xiamen operations center, will develop a global product supply system that will help meet domestic and global needs.
The establishment of Dell's Chengdu global operations site also will help attract worldwide suppliers to the Chengdu area, which, in turn, will assist local suppliers in Sichuan Province with international expansion plans.
The new Dell site is expected to spur additional manufacturing industries in Chengdu and help create a more effective supply chain and distribution system for the region. That's in the spirit of the national government's "Go West" policy to develop inland areas of the country.
China is Dell's second-largest market after the US in terms of revenue. The new Dell center is expected to become a key element in the company's growth and certainly a clear sign of the company's commitment to further development of western China.
Dell's end-to-end solutions will be applied to the entire site here to showcase the company's IT capabilities.
What's the blueprint for Dell Chengdu in the future?
Western China possesses huge development opportunities. It's one of the areas where Dell has grown at a rapid pace. We firmly believe that our initiatives in Chengdu will become a strong contributor to China's IT industry growth in the country's western area.
As Dell transforms itself from solely a PC manufacturer to an end-to-end IT solutions provider, the company aims to set up an efficient supply chain with upstream and downstream partners in Chengdu.
Where does Dell stand now in China?
Dell China employs around 9,000 people in the mainland and in Hong Kong and Taiwan since it initially entered the market in 1998.
The company has steadily expanded its business operations to include two production factories, a global command center, a Dell services China regional headquarters in Xiamen, a global sourcing center in Shanghai, an international services center in Dalian and its emerging global operations center in Chengdu.
In Taiwan, Dell has a global product design center.
The company now has 6,000 national sales stations covering more than 350 cities in China.
Every year, Dell purchases an estimated US$20 billion of products from suppliers in China and is one of the biggest exporting IT companies in China.
Dell said the site will form an important link in its global supply chain.
Amit Midha, president of the Dell's Asia-Pacific and Japan regions and chairman of Dell Global Emerging Markets, discussed the regional and national strategies of the company.
What's the history of Dell's investment and development in Chengdu?
Dell has been operating a call center in Chengdu since 2011 - its third call center in China and the first one in western China. In June 2012, Dell celebrated the shipment of its first product manufactured in Chengdu by local partners, including more than 20 of the newest laptops.
The new Chengdu site and the Dell Xiamen Operations Center will complement one another. The new operations center will enhance services to governments, companies and individuals.
Why did you choose to invest in Chengdu?
Dell chose the site because of favorable growth projections and China's commitment to build a world-class supply chain system in Chengdu. That makes it an ideal location to expand our ability to serve the needs of customers in western China and beyond.
Employing the best talent available is a critical factor in Dell's development strategy. In 2012, there were 500 staff working in Dell Chengdu.
They cover not only production, but also research and development, logistics and technology.
Chengdu is a hub in what might be called the "new Eurasian land bridge." It can help us shorten export times to Europe, which is helpful from a global sales standpoint.
No matter which way you look at it - from the viewpoint of supply chain, business development or geographic advantage - investment in western China is of great importance to Dell.
What will Dell Chengdu's development mean to local industries?
Dell is dedicated to promoting cloud computing in Chengdu. We are establishing joint laboratories with educational institutions and providing advanced technologies to local enterprises. Dell is also setting up cloud platform labs in Chengdu for joint testing with companies like China Telecom and Aipu. The Dell Aipu Cloud Computing Center went into operation in December 2012, with initial investment of 50 million yuan (US$7.9 million). That's expected to expand to more than 200 million yuan over time.
How does Chengdu fit into your global strategy?
The Chengdu facility is a world-class operations center and the second in China to gather together manufacturing, customer services and sales. The Dell Chengdu global operations site, in conjunction with the Xiamen operations center, will develop a global product supply system that will help meet domestic and global needs.
The establishment of Dell's Chengdu global operations site also will help attract worldwide suppliers to the Chengdu area, which, in turn, will assist local suppliers in Sichuan Province with international expansion plans.
The new Dell site is expected to spur additional manufacturing industries in Chengdu and help create a more effective supply chain and distribution system for the region. That's in the spirit of the national government's "Go West" policy to develop inland areas of the country.
China is Dell's second-largest market after the US in terms of revenue. The new Dell center is expected to become a key element in the company's growth and certainly a clear sign of the company's commitment to further development of western China.
Dell's end-to-end solutions will be applied to the entire site here to showcase the company's IT capabilities.
What's the blueprint for Dell Chengdu in the future?
Western China possesses huge development opportunities. It's one of the areas where Dell has grown at a rapid pace. We firmly believe that our initiatives in Chengdu will become a strong contributor to China's IT industry growth in the country's western area.
As Dell transforms itself from solely a PC manufacturer to an end-to-end IT solutions provider, the company aims to set up an efficient supply chain with upstream and downstream partners in Chengdu.
Where does Dell stand now in China?
Dell China employs around 9,000 people in the mainland and in Hong Kong and Taiwan since it initially entered the market in 1998.
The company has steadily expanded its business operations to include two production factories, a global command center, a Dell services China regional headquarters in Xiamen, a global sourcing center in Shanghai, an international services center in Dalian and its emerging global operations center in Chengdu.
In Taiwan, Dell has a global product design center.
The company now has 6,000 national sales stations covering more than 350 cities in China.
Every year, Dell purchases an estimated US$20 billion of products from suppliers in China and is one of the biggest exporting IT companies in China.
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