Dell (DELL) yesterday formally opened its new manufacturing operation in Xiamen.

The 594,000-square-foot facility is Dell's second manufacturing operation in Xiamen and more than doubles the company's production capacity in China.

The factory uses Dell's proprietary, build-to-order processes to produce its PowerEdge servers, PowerVault storage systems, Dell Precision workstations, Latitude and Inspiron notebook computers, and OptiPlex and Dimension desktop computers for customers in Japan, South Korea and Hong Kong.

Dell's first factory in Xiamen supplies customers in mainland China, the company's fifth-largest and one of its fastest-growing businesses.

Since the launch of its direct-to-the-customer business in China in 1998, Dell has significantly enhanced its presence in the country. In addition to two manufacturing operations in China, Dell has an Enterprise Command Center in Xiamen that provides customers with mission-critical enterprise services, and a global design center in Shanghai. In March, Dell announced 200 additional jobs at the Shanghai center.

Last year, Dell purchased nearly US$16 billion of technology components and other products from suppliers in China to support its worldwide manufacturing.

In Dell China's most-recent quarter, product shipments increased 40%, double the industry average, and revenue grew 29%.