Dell has announced the sale of its North American remanufacturing operation in Lebanon, Tennessee, to GENCO Supply Chain Solutions, a U.S.-based, third-party logistics services provider. The sale includes Dell’s receipt and remanufacturing operation, a 298,000-square-foot facility and continued employment for the employees in that facility.
The News:
Dell says the move is among changes it is making to simplify its global operations, enhance efficiency and reduce costs.
Dell is committed to GENCO’s new Lebanon operation for three years for the remanufacture of its returned desktop and notebook computers, servers and storage systems, which are then sold as refurbished products to customers.
Full terms of the agreement were not disclosed, and the purchase will not become final until closing conditions are met.
Subject to customary closing conditions, GENCO is expected to begin managing operations at the Lebanon facility on 1st August.
Dell’s sales, order fulfillment, and technical and sales support functions in the greater Nashville area are unaffected.
Dell’s Global Manufacturing and Distribution Network:
Dell’s global manufacturing and distribution network consists of company-owned facilities around the world:
Americas: Hortolandia, Brazil; Miami, Fla. (Alienware); Reno, Nev.; Winston-Salem, N.C.; Nashville; and Austin, Texas.
Europe, the Middle East and Africa: Limerick and Athlone (Alienware), Ireland; and Lodz, Poland.
Asia-Pacific: Xiamen, China; Penang, Malaysia; and Chennai, India.
In January Dell announced it would move production of computer systems for customers in Europe, the Middle East and Africa from Limerick to its Polish operation and manufacturing partners over the next year.
The use of manufacturing partners allows Dell to improve its efficiency, and better serve customers in certain segments and locations.
Annette Clayton, Vice President, Global Supply Chain said: “Dell continues to provide customers with a wide range of quality refurbished products, even as we improve competitiveness through the expertise and capabilities of a long-standing partner.”