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 was promised almost £28m in government relocation grants, said in 2006 that 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.
The firm is to be asked to return £19.9m in grants already paid.
The firm is to be asked to return £19.9m in grants already paid.
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
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
Atmel, 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, 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.
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: "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'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.
"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 announcement was condemned by Tynemouth Labour MP Alan Cambpell, who said: "'The future of more than 600 people, the victims in this, has been sealed by a commercial decision made thousands of miles away.
Disappointing behaviour
Disappointing behaviour
The announcement was condemned by Tynemouth Labour MP Alan Cambpell who said: "'The future of more than 600 people, the victims in this, has been sealed by a commercial decision made thousands of miles away.
"Atmel's decision now and Siemen's before, shows how global decisions made thousands of miles away can impact on local communities.
"Atmel's decision now and Siemen's before, shows how global decisions made thousands of miles away can impact on local communities.
"People will be asking whether it's not now time to look at what more can be done to encourage the development of local companies who are more loyal to our area."
"People will be asking whether it's not now time to look at what more can be done to encourage the development of local companies who are more loyal to our area."
North Tyneside elected Mayor, John Harrison, added: "I am disappointed at the behaviour of Atmel, who from California, took the decision to close this plant..
North Tyneside elected Mayor John Harrison added: "I am disappointed at the behaviour of Atmel who, from California, took the decision to close this plant.
"I believe the workers deserved more from a company that has put shareholders before the loyalty they owe their workforce."
"I believe the workers deserved more from a company that has put shareholders before the loyalty they owe their workforce."
'Devastating blow'
'Devastating blow'
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.
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 out of a promised package of £27.9m."
He said: "We will be writing to the company asking that they repay £19.9m already paid to them out 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. But ultimately, the sale of Atmel was a commercial decision taken by the company.
Alan Clarke, chief executive of regeneration agency One NorthEast, said: "Today's announcement is very disappointing for the workers and the region. 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."
"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 a devastating blow for the region and for British manufacturing.
Davy Hall, regional official of the Unite union, added: "This is a devastating blow for the region and for British manufacturing.
"These are high-quality jobs which are now disappearing."
"These are high-quality jobs which are now disappearing."
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