Dell cuts North-Carolina plant despite $280m sweetener

[Christa]

Dell has settled a long-running dispute over a $280m incentives package to open shop in North Carolina by shutting the facility and cutting 905 jobs to control costs.

Dell announced Wednesday it will close its disputed desktop computer manufacturing plant near Winston-Salem, North Carolina, by the end of January. The news arrived just two days after plant marked its fourth year in operation.

And, Michael's company must pay the state back in full the generous incentives it received, for failing to live up to the terms of the agreement it reached with North Carolina.

Back in 2004, Dell convinced the state to bend over backwards in order to set up its third US plant in North Carolina. Eager for high-tech jobs and compelled by the company's patriotic pitch, the state gave Dell an enormous golden handshake to the tune of around $280m in tax breaks, roads to the factory, and Dell repair classes in local colleges. In return, Dell agreed to invest $100m in the factory and create 1,500 jobs within five years.

http://www.channelregister.co.uk/2009/10/08/dell_closing_north_carolina_plant/



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[lildreamer316]

1. Yep, this was all over the local news last night.

Sigh. Not good; not good at all. Coming on the heels of the FedEx's failure to finish their hub here; it's just more devestating.

[lildreamer316]

2. Kick