Hundreds of NEC jobs under threat

Published on Sunday 26 May 2002 01:00

THERE were fears last night for the future of more than 400 Silicon Glen jobs after Japanese reports that NEC is to close its desktop computer factory in West Lothian.

The report in the Japanese financial press said the company plans to close its Scottish and Malaysian plants in an attempt to revamp its troubled personal computer businesses.

The company, which makes Packard Bell computers at Livingston, is said to be looking for a buyer for the Scottish plant and intends to farm out the lost production to a Taiwanese firm operating in China.

If the factory does close, it will be another major blow for the Scottish electronics industry. Last year saw thousands of job losses with the closure of Motorola’s factory in Bathgate and NEC Semiconductors’ manufacturing plant in Livingston.

The computer assembly plant at Livingston’s Kirkton Campus opened just four years ago and produces 350,000 desktop computers a year for sale on the European market. It employs 450 staff.

According to the Japanese reports, NEC is speeding up reforms of PC operations.

It plans to shift production from Japan and France to China. The company expects Chinese production eventually to account for 70 % of its total PC output.

Danny Carrigan, Scottish regional secretary of the union Amicus, said the Japanese report was “worrying news”.

He said: “It’s another indication the electronics industry is in the doldrums. We had hoped it had come out of the recession, it’s another bad signal for Silicon Glen. We will be seeking clarification from the Scottish Executive and asking for an early meeting so they can clarify the position.”

Gordon Samson, member of the operating board of the Edinburgh Chamber of Commerce, said another possible closure in the area was unwelcome news.

He said: “If the news is true, it’s a further devastating blow to the West Lothian economy following the recent electronic sector closures. West Lothian has worked hard at inward investment and new business start ups and this would be very unwelcome news indeed.”

Willie Dunn, deputy leader of West Lothian Council, said: “It’s obviously a disappointing blow coming on top of the closure of the manufacturing operation in Livingston.”

Senior managers of NEC Computers International could not be contacted last night about the reports.