Tech Data to Build Fontana Plant

Tech Data, the No. 2 computer distributor, will build a plant to assemble computers next to its Fontana distribution center as it gears up to meet increased demand for personal computers, software and networking equipment. It will also expand a distribution center in Fort Worth. The company, which has a work force of 8,240, will hire 200 people by the middle of next month, most of whom will work in the two facilities.

Tech Data’s expansion follows the $6-billion contract it won in May to assemble and deliver computers for General Electric. It also was chosen as one of Compaq Computer’s four distributors under the world’s largest PC maker’s streamlined system. The extra business from those agreements and burgeoning demand overall drove the building plans, the company said.

“We’re experiencing significant growth and need the capacity,” said Ben Godwin, vice president of real estate and corporate services at Clearwater, Fla.-based Tech Data.

Tech Data’s first-quarter sales surged 77% to $3.88 billion. On Friday, the company’s shares fell 81 cents to close at 38.19 on Nasdaq.

The new plant in Fontana is the latest sign of computer distributors taking over some assembly duties from computer makers. Tech Data and other distributors are trying to speed delivery and lower costs to compete better against computer makers like Dell Computer that sell direct.

The Fontana plant, which will be completed by early September, will fill West Coast orders and late East Coast orders, Godwin said. Tech Data also has assembly plants in New Jersey, North Carolina and Houston, as well as others around the world.