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More than 900 computer jobs to go | More than 900 computer jobs to go |
(about 4 hours later) | |
More than 900 jobs are to be lost in County Londonderry with the closure of the Seagate plant which makes components for hard disc drives. | More than 900 jobs are to be lost in County Londonderry with the closure of the Seagate plant which makes components for hard disc drives. |
Staff were given the news at a meeting in the Limavady plant on Monday. | |
Seagate, which has received £12m from Invest Northern Ireland and its predecessor IDB since 2001, will close in the second half of next year. | Seagate, which has received £12m from Invest Northern Ireland and its predecessor IDB since 2001, will close in the second half of next year. |
Plant manager William O'Kane said the news was sad but inevitable. "This is no way due to the employees," he said. | |
"We have a fantastically skilled and fantastically motivated and fantastically inventive workforce which would be an asset to any future employers. | |
"However, even with those assets and the improvements we have made in productivity and technology, we have had to bow to the inevitable cost pressures that exist in the Far East." | |
The American company has had a base in Limavady for the last decade. | The American company has had a base in Limavady for the last decade. |
However, it has a plant in Malaysia which is due to start operations in the new year. | |
It will make the computer components currently being made in Limavady. | |
Wage costs | |
Enterprise, Trade and Investment Minister Nigel Dodds said the closure was hugely disappointing for the workforce, the north west and the wider economy. | |
"(It) is a direct result of significantly lower wage costs in Asian competitors, foreign exchange and shipping costs which have created a competitive cost gap of some £15m per year," he said. | |
He said he was glad Seagate's wafer fabrication facility in Londonderry would not be affected by the announcement. | |
The minister said senior officials from Invest NI were working with the company and the Department of Employment and Learning on a joint approach to retrain and reskill the affected staff. | |
"I have also asked senior officials in Invest NI to be available to discuss the options for attracting future potential investment in the area with local representatives." | |
Mr Dodds added: "This situation clearly illustrates the need for Northern Ireland business to be competitive and to concentrate on higher added value products and services." | |
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