MINISTER for Enterprise Mary Coughlan has said she has been told by Dell that the computer manufacturer is pushing ahead with a cost-saving plan that threatens to put up to 2,000 jobs at risk in Limerick.
In a statement yesterday, Ms Coughlan confirmed that she and Minister for Defence Willie O'Dea flew to Austin, Texas, last weekend for talks with Dell executives, including company founder Michael Dell.
"The purpose of the meeting was to seek an update on the implementation of Dell's new corporate strategy, which aims to achieve $3 billion in annualised cost savings by the end of their 2011 financial year and in particular the company's plans for the future of their operations in Limerick," said Ms Coughlan.
The statement, issued on her behalf by her department, said the company confirmed to her and Mr O'Dea, a TD for Limerick city, that it was pushing ahead with its cost-saving plan.
"Weakening demand and associated cost pressures continue to put pressure on the company to implement its new strategy.
"Dell is continuing its internal consideration of exactly what its new strategy means for its operations in Limerick. The company has undertaken to communicate the details both to staff and to the Government as soon as it is in a position to do so."
Mr O'Dea said the Government had been aware of the dangers posed to Dell's operations in Ireland for some time: "We went out to secure as much of it as possible," he told The Irish Times.
Unwilling to say much about the meeting, Mr O'Dea said he and Ms Coughlan had "put a few propositions to them, both to secure as much as we can of what we have here, and to build on what they have here".
The future of the company's manufacturing and assembly operation in Raheen in Limerick, which employs 2,000 people, has been in doubt ever since Dell opened a plant in Lodz in Poland in 2007.
The Polish plant, which employs 1,800, is expected eventually to employ 3,000.
Dell pays more than €200 million in salaries every year in the Republic, and in excess of €55 million in corporation tax, as well as supporting the existence of dozens of Irish companies.
A spokeswoman for Dell said its review was ongoing.
