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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (93812)	11/20/2001 1:33:40 AM
From: Night Writer	Respond to of 97611

Ontario, Calif., Plant Labors to Fill Contract Obligation for Compaq Computer Nov 19, 2001 (The Business Press - Knight Ridder/Tribune Business News via COMTEX) -- A local computer manufacturing plant is busy helping to fulfill a large contract won by its Houston-based parent company. Compaq Direct, the Ontario division of Compaq Computer Corp., is one of two Compaq manufacturing sites tapped to meet a $100 million order from automobile manufacturer General Motors Corp., company officials said last week. Compaq Computer Corp. assembles and ships personal computers. Officials announced Nov. 10 the company had received a three-year contract for 100,000 notebook and desktop computers. The $100 million price tag was based on average selling prices and is one of the largest contracts the computer maker has received to date, according to a published report. While the deal is a big one, it will not require additional employees at the plant, which is staffed by 225 people, said Dayna Fried, Compaq spokeswoman. An average of 1,200 computers a day are made in Ontario. How many more computers will be made there as a result of the GM deal wasn't known last week, Fried said. Manufacturing there involves the use of 188 automated work stations where computer orders can be customized to include special features like DVD drives and additional memory. Special components can be added in 15 minutes to three hours. Products shipped from Ontario International Airport generally arrive at their destination within five days. "This facility marks a fundamental shift in how Compaq does business. ... At this facility companies can basically build their own computer," Fried said. A Compaq Direct division in Indianapolis is also making computers for GM, Fried said. The 180,000-square-foot Compaq Direct site at 1220 Baker Ave. in Ontario opened 18 months ago. The facility takes orders for Compaq's western region which is headquartered in El Segundo. In other Compaq news, the company grabbed a $20 million-a-year, multi-year deal with Ohio-based Cardinal Health. That deal was announced Nov. 15, the same day Compaq leaders joined Hewlett-Packard Co. officials in filing a formal merger prospectus. By Darla Martin Tucker