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Dell Inc to close US plant, lay off 905

Dell Inc said Wednesday it will close a desktop computer manufacturing plant in Winston-Salem, North Carolina, by the end of January.

The computer maker said 905 people will be laid off, with around 600 to be let go next month. The plant was opened in 2005.

Dell was promised more than $300 million in state and local incentives to open the plant. But it was required to invest $100 million, create 1,700 jobs by September 2010 and maintain those jobs for 10 more years. If those terms weren’t met, the company would forfeit the incentive package.

Dell said it would comply with the terms of the incentive agreement.

The plant closure is part of a plan to save $4 billion a year at Dell by 2011.

In June, Dell sold its Lebanon, Tennessee, remanufacturing plant to Genco. In January, Dell said the company would move its Ireland manufacturing operations to Poland, a process that is still ongoing.

Dell has plants in the U.S. (Miami, Nashville, Austin, Texas), Brazil, Ireland, Poland, China, Malaysia and India. It also partners with other manufacturers to make certain products.

Shares of Round Rock, Texas-based Dell fell 20 cents to $15.31 in afternoon trading.

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