U.S firm axes 800 jobs at computer chip plant

Published on Wednesday 15 October 2008 13:52

The loss of about 800 manufacturing jobs in Scotland at a US-owned computer chip firm was today described as "devastating".

Local MSP Andy Kerr urged the Scottish Government to help find new jobs for axed workers at Freescale Semiconductor in East Kilbride, near Glasgow.

The Government said the move by the company was "disappointing".

Freescale confirmed it was to stop manufacturing at its East Kilbride plant which employs about 1,000.

It started looking for a buyer for the plant in September last year and there had been hopes it could be sold as a going concern.

But in June the company announced plans for a proposed closure, and the firm now says the plant will shut in the spring.

The company said previously that technology advances had resulted in falling customer demand for the products produced in East Kilbride.

Freescale's factory was established in the town by Motorola in 1969 to design, manufacture, test and package embedded microchips for use in mobile phones and car engines.

Andy Kerr, Labour MSP for East Kilbride, said: "This is devastating but not unexpected.

"It is a huge blow to East Kilbride and the local economy."

Mr Kerr said he was seeking Scottish Government assurances of help for the workers seeking new jobs, as well as assurances that the remaining 200 research and development jobs would stay in East Kilbride.

The Scottish Government said: "This is disappointing news and will obviously be a serious blow to the facility's employees and their families.

"Freescale has not rushed into this decision – it has been reached at the end of a lengthy process which reflects the particular markets the company operates in."

A government spokesman said "every effort" had been made to help the company find an alternative solution.

"However, we understand that the lack of a buyer for the facility means that Freescale feels that closure is the only option," he said.

"Until the final closure, we'll continue to try find a future for the site.

"Ministers made that clear in conversations with the senior company executives yesterday and Scottish Development International will continue to work closely with the company.

"And through Skills Development Scotland, the Government will stand ready to do all it can to help anyone who loses their job."

The firm had emphasised its commitment to research and development at East Kilbride, he added.