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Factory sale will cost 600 jobs Factory sale will cost 600 jobs
(about 1 hour later)
More than 600 jobs are to go on Tyneside, with the closure of an American-owned microchip plant.More than 600 jobs are to go on Tyneside, with the closure of an American-owned microchip plant.
Atmel is to sell its factory at Silverlink, North Tyneside, to a business park developer, with equipment going in a separate deal to Taiwan.Atmel is to sell its factory at Silverlink, North Tyneside, to a business park developer, with equipment going in a separate deal to Taiwan.
The company, which received about £30m in government relocation grants in 2000, said in 2006 the plant was likely to go because of planned restructuring. The company, which was promised almost £28m in government relocation grants, said in 2006 that the plant was likely to go because of planned restructuring.
Staff consultations are to start in the next few days. The firm is to be asked to return £19.9m in grants already paid.
Atmel, which is one of North Tyneside's largest employers, took over the former Siemens electronics plant, which itself closed less than a year after it opened in 1997.Atmel, which is one of North Tyneside's largest employers, took over the former Siemens electronics plant, which itself closed less than a year after it opened in 1997.
'Difficult decision'
The factory is expected to cease production in the spring of 2008.The factory is expected to cease production in the spring of 2008.
Atmel's North Tyneside managing director Craig McInnes said: "In December 2006, we announced that we would be seeking a buyer for the facility here in North Tyneside. I believe the workers of this plant deserved more from a company that has put shareholders before the loyalty they owe their workforce North Tyneside mayor John Harrison
"Having reviewed the options open to us, we have informed staff that Atmel has come to an agreement with TSMC (Taiwan Semiconductor Manufacturing Company, Ltd) and Highbridge Business Park Limited, to respectively acquire the facility's wafer fabrication equipment and site. Atmel's North Tyneside managing director, Craig McInnes, said: "This has been a difficult decision to take, and is no reflection on the highly-valued work performed by our employees, here in Tyneside.
"This has been a difficult decision to take, and is no reflection on the highly-valued work performed by our employees, here in Tyneside.
"Atmel has many hard-working, dedicated employees at the North Tyneside facility who serve our customers and our company admirably.
"We are committed to treating employees with respect and helping ease the transition for employees at the North Tyneside facility as production is concluded.""We are committed to treating employees with respect and helping ease the transition for employees at the North Tyneside facility as production is concluded."
The decision was strongly criticised by the elected mayor of North Tyneside John Harrison.
'Very disappointing'
He said: "I am disappointed at the behaviour of Atmel, who from California took the decision to close this plant thousands of miles away.
"I believe the workers of this plant deserved more from a company that has put shareholders before the loyalty they owe their workforce."
A spokesman for the Department for Business, Enterprise and Regulatory Reform (formerly the DTI) said it would seek to recoup cash paid to the company in grants.
He said: "We will be writing to the company asking that they repay £19.9m already paid to them of a promised package of £27.9m"
Alan Clarke, chief executive of regeneration agency One NorthEast, said: "Today's announcement is very disappointing for the workers and the region.
"We have met with Atmel US senior executives and potential purchasers over many months to reiterate One NorthEast's support for the business going forward.
"But ultimately, the sale of Atmel was a commercial decision taken by the company.
"We will be seeking assurances from the company regarding the new owners' intentions for the site."
Davy Hall, regional official of the Unite union, added: "This is adevastating blow for the region and for British manufacturing.
"These are high-quality jobs which are now disappearing."