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To: Night Writer who wrote (88850)	1/15/2001 1:28:21 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Dell <DELL.O> to double Asia-Pacific capacity (Adds background, quotes throughout) By Patrick Chalmers KUALA LUMPUR, Jan 15 (Reuters) - Leading direct marketer of computers Dell Computer Corp. <DELL.O> said on Monday it plans to double manufacturing capacity for the Asia-Pacific, confident that sales growth will outpace any U.S. economic slowdown. Simon Wong, managing director for Dell's Asia Pacific Customer Centre in the north Malaysian state of Penang, said the new plant, to be built near the existing facility, would boost production to two million units within three years. "We are stretched right to the limit. The healthy growth of the region and the market is creating tremendous demand," Wong told a news conference. Dell now ships personal computers, servers and other computer equipment to almost the whole Asia-Pacific region from its Malaysian plant, although China is supplied from a dedicated facility in that country. Wong said Dell revenues in the region amounted to $2.1 billion, or seven percent of the $30 billion in revenues generated globally in the four quarters to October 27 last year. The company said in November that strong sales to large corporate customers helped its sales surge 39 percent in Asia, with sales growth of more than 70 percent in China. Yasmin Mahmood, Dell's Malaysia general manager, said in reply to reporters' questions that growth in regional computer markets would outpace the effects of any slowdown in the U.S. economy. "We feel that for computer products, especially for a company like Dell, we still have a lot of room to grow," she said. Many major U.S. computer names have warned recently that they will miss fourth-quarter targets, with computer makers like Compaq Computer Corp. <CPQ.N>, Apple Computer Inc. <AAPL.O>, Gateway Inc. <GTW.N> and semiconductor behemoth Intel Corp. <INTC.O> all dampening analyst expectations. Last week, Dell competitor Gateway reported fourth-quarter profits less than one-third the expected level -- a forecast that had already been scaled back dramatically just after Thanksgiving late last year. The industry has been hit hard by a slowdown in consumer sales of PCs in the United States, causing New York analysts to brace for a similar warning from Dell itself. DELL COY ON NEW PLANT COSTS Dell executives refused to release investment details regarding the new facility in Malaysia, with Wong saying only that it would be "substantial" and "in the millions region." He said production from the new manufacturing line would start next March, and anticipated 600 more people joining the Malaysian workforce, swelling it to some 2,000 or 2,100 by the end of the year. Dell began manufacturing operations in Malaysia in late 1995 and is on course to produce its three millionth unit within the next 60 days, Wong said. ((Kuala Lumpur newsroom, +603 2275-6846 fax +603 232-6752, kuala.lumpur.newsroom@reuters.com)) REUTERS