Jobs blow as NEC axes 465

Published on Monday 27 May 2002 01:00

ELECTRONICS giant NEC today announced it was closing its personal computer plant in Livingston with the loss of 465 jobs.

Production is to be switched to China, where labour costs are lower.

The announcement is a new blow to the West Lothian economy. NEC shed more than 1500 jobs last year with the closure of its semiconductor plant in Livingston.

The area has already suffered 3000 job losses with the closure of the Motorola factory in Bathgate.

Today, West Lothian Council’s economic development spokesman, Willie Dunn, called for a special task force to be set up, chaired by Enterprise Minister Iain Gray, to plan the area’s economic recovery.

Speculation about the future of the NEC factory at Livingston’s Kirkton Campus began over the weekend after reports in Japanese newspapers.

But today NEC confirmed the area’s worst fears that the plant, which makes 350,000 PCs a year, would shut.

The company blamed the closure on a slump in the market and said its decision to end production in Scotland and Malaysia was part of a restructuring programme.

A spokesman said: "We are negotiating to sell the facilities, including a transfer of the employees, but nothing concrete has been decided."

The company said it had been affected both by a downturn in the market and competition and said it can reduce costs by switching work to China.

Councillor Dunn added: "Obviously, this is a further blow for us in West Lothian, the latest in a series.

"We need a specific task force set up for West Lothian, chaired by the minister or a senior civil servant, because we are not getting out of this easily.

"We need to look in depth at our economy in West Lothian and see how we can help it recover.

"If this was just 500 jobs, it would be a tragic blow for individuals, though not so damaging for the local economy. But this is a massive blow for us. We need help."

And he criticised the way the company had handled the announcement, leaving staff to hear from press reports.

"The news seemed to leak out in Japan at the weekend, but neither the Scottish Executive nor the local authority knew anything about it."

In December last year, NEC announced 1500 job losses at its semiconductor plant in Livingston.

That followed the decision by Motorola in April to close its factory in Bathgate with the loss of 3000 jobs.

Danny Carrigan, Scottish secretary of engineering union Amicus, said today’s announcement was devastating news.

He said: "We will be seeking immediate clarification from the company and asking the Scottish Executive to intervene to see if they can save jobs there.

"We will be pulling out all the stops to see what we can do, but our experience suggests when a global company like NEC has made a decision there is little anyone can do to prevent it.

"Experience with Motorola showed even when the Prime Minister intervenes, he cannot keep the plant open."

Mr Carrigan added: "It is disappointing there was all this speculation over the weekend. It is doubly tragic that people whose jobs are on the line have been hearing about it through the media."

A Scottish Executive spokesman said: "We regret the decision by NEC Computers to close its facility in Livingston

"We are in direct contact with the local plant and corporate HQ to establish full details and timings.

"Our main concern must be to ensure that everything possible is done to assist those affected find alternative employment."

NEC is Japan’s largest personal computer maker but it has been hit hard by last year’s slump in the information technology market and aggressive foreign rivals.

The company reported a loss of nearly 2 billion for the year to March 31.