To: Paul Merriwether who wrote (20205 ) 11/1/1997 10:05:00 AM From: John Hauser Read Replies (1) | Respond to of 176387
Dell Studying Austin Manufacturing Campus Proposed campus would be Dell's second in Central Texas. New server facility planned for 1998 ROUND ROCK, Texas, Oct. 31 /PRNewswire/ -- Dell Computer Corp. (Nasdaq:DELL) announced today that it is studying development of a 570-acre campus in Austin's Preferred Growth Corridor to accommodate its future manufacturing needs. Dell has several parcels of land under contract totaling 450 acres and has closed on a 120-acre parcel in northeast Austin between Yager and Parmer Lanes, east of Interstate 35. The proposed campus will significantly expand the company's already sizable contribution to the local and state economy. Recent economic studies peg the company's direct and indirect economic contribution to Central Texas to be nearly $3 billion and 30,000 jobs. Dell officials believe that the proposed campus will let the company respond more quickly to its needs for additional manufacturing capacity in the future. ''In our industry, performance and success are measured in days and hours,'' said Kevin Rollins, president of Dell Americas. ''We continuously look for strategies that will shave time from our processes to improve our competitiveness. A master-planned location -- with zoning, electricity and roads in place -- will ensure Dell has the flexibility it needs in the future to expand manufacturing capacity quickly.'' A manufacturing facility for servers and workstations could be the campus' first facility if the company secures the necessary zoning and approvals in time to begin construction by mid-1998. The server/workstation facility is needed to fulfill growing demand for the company's advanced systems. Dell's server business grew 300 percent compared with the year-ago quarter and strong customer demand has propelled Dell to the #3 ranking in US server sales since the company introduced its new server product line. Strong demand across its product lines and customer appreciation of its direct business model has fueled Dell's annual growth rate which has averaged 54 percent a year over the last five years, generating new marketshare for the company and driving its reinvestments in Central Texas. Dell is currently ranked second in the US and third in worldwide industry rankings, and Central Texas now accounts for at least 60 percent of the company's worldwide production and employment. The region is also home to Dell's corporate headquarters and Dell Americas, the regional unit which supports the company's business in the US, Canada and Latin America. Dell also owns a 350-acre campus in Round Rock which is home to sales and marketing, technical support and corporate offices. Dell's Round Rock operations are expanding with the addition of 327,000 square-feet of office space which will be completed in early to mid-1998. Dell's total local employment was 9,500 at the close of its second quarter, making the company the region's second largest private employer. ''The single greatest challenge to Dell's ability to sustain its industry- leading growth rate is our ability to scale our infrastructure -- including facilities, people and systems,'' said CEO Michael Dell. ''We will continue to invest in our infrastructure in Central Texas to meet the needs of our business and we appreciate the support and cooperation this region has given us throughout our history.'' ''Austin and Central Texas are very proud of Dell, its international success and its commitment to this region,'' said Austin Mayor Kirk Watson. ''The city of Austin is excited that Dell is looking to expand in Austin and looks forward to reviewing its plans and working to achieve another success for Dell and Central Texas.'' SOURCE Dell Computer Corporation