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VIDEO: 800 jobs axed as hi-tech factory closure confirmed
 
The Freescale factory in East Kilbride, which makes computer chips, will close next spring, with the loss of 800 jobs
The Freescale factory in East Kilbride, which makes computer chips, will close next spring, with the loss of 800 jobs
 

AROUND 800 jobs are to go as a US-owned computer chip firm axes its factory in South Lanarkshire.

Freescale had been looking for a buyer for the East Kilbride plant since September last year.

It was hoped the factory could be sold as a going concern but in June the company announced plans for a proposed closure.

Freescale now says the former Motorola plant will shut in spring 2009.

A spokesman said: "Freescale Semiconductor has concluded collective consultation with employees on strategic options for the East Kilbride plant.

"All possibilities for the factory have now been fully explored and the decision has been reached to cease manufacturing.

"The company will enter into individual consultations with employees."

The closure confirmation comes four months after the Evening Times revealed the plant was to be axed next year after Freescale failed to find a buyer for the 25-acre site, despite a global search.

The company said previously that technology advances had led to a fall in demand for products made in East Kilbride.

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

In June, First Minister Alex Salmond pledged government support for those facing redundancy after it emerged the plant was facing closure.

Mr Salmond said the closure would be a "very severe blow".

The microchip giant was acquired by a consortium of venture capitalists for $17.6bn (£10bn) in 2006.

It blames the closure on technological change, citing a sector-wide move to cheaper microchips for increasingly sophisticated car dashboard displays.

It added that products from East Kilbride were going into old vehicle models.

It's understood some of the employees are attempting to challenge the legality of the company's reduced redundancy terms amid allegations of bullying by management.

Andy Kerr, Labour MSP for East Kilbride, said of the closure: "Like many of the workforce I view this as an inevitability.

"While there is huge disappointment, there is also a feeling of sad expectation around it.

"The workers are continuing their legal action regarding the revised redundancy arrangements and I support them."

He said he had spoken to Finance Secretary John Swinney.

"I expect action for continued employment, which has proven successful in previous big closures, will be immediately in play," he added.

Publication date 15/10/08

Posted by: calamero, Glasgow on 11:31am Wed 15 Oct 08
I am sure they could have changed the product line (as they must have in the past) at East Kilbride if they wanted to.

Pitiful excuse to move the capacity to a cheaper location.
Posted by: disco dave, bishopbriggs on 12:22pm Wed 15 Oct 08
can the government not back them up the same as the banks......gordon brown can splash the cash in scotland.
Posted by: Stewie Griffin, Glasgow on 3:37pm Wed 15 Oct 08
can the government not back them up the same as the banks


No way, why should the tax payer shell out even more for private companies? They get start up grants worth millions. They should stand on their own. That's the private business sector for you.
Posted by: steven976, Feltham, Middx on 4:31pm Wed 15 Oct 08
I seem to recall MOTOROLA getting grants from the former SCOTTISH ENTERPRISE for siting a factory in Bathgate about 20 years ago. As soon as the term of the grant had expired, Motorola upped sticks!!.. NO CHANGE THERE THEN!!
Posted by: Blind.hippy, ayrshire on 4:34pm Wed 15 Oct 08
Well there we go again another factory shutting down in scotland and what time of year is it yes {{ xmas }] sorry to mention thee dreaded name. now families who have worked there its the bru fur then and itle add to the numbers this morning concerning the umenployed is now reaching nearly the 100 million mark and they say itle be around 1 million and 500.000 by december.sp wonder how many{ NEW BULILT HOUSES WILL BE BUILT ON THIS LAND} not council houses oh no.
Posted by: ex labour voter, glasgow on 6:06pm Wed 15 Oct 08
"I expect action for continued employment, which has proven successful in previous big closures, will be immediately in play," he added.Andy Kerr is ranting his usual misleading rubbish, no one cares what this selfseeking liebourite puppet has to spew.
If this clown is referring to motorola then is he expecting THE GVMT to send the redundant workforce to attend flower arranging classes.
No one beleives liebour lies anymore.
Posted by: Brad on 11:04pm Wed 15 Oct 08
steven976 wrote:
I seem to recall MOTOROLA getting grants from the former SCOTTISH ENTERPRISE for siting a factory in Bathgate about 20 years ago. As soon as the term of the grant had expired, Motorola upped sticks!!.. NO CHANGE THERE THEN!!
Not true.

If you have any evidence to the contrary, please let us know.
Posted by: ian young, Melbourne on 4:08am Thu 16 Oct 08
I was employed for 5 years by the Digital semi plant in South Queensferry (white elephant) and then 7 years in Motorola EKB - was also involved in the Hyundai semi plant purchase in Dunfermline (another white elephant). Motorola has been a solid employer in EKB for over 30 years and i's remarkable they have lasted as long as they did - this move is simply economics - old facility / old technology / high cost manufacturing compared to Asia. Writing was on the wall on the facility 5 years back when I upped sticks and moved to Australia. No regrets for the record.
Posted by: steven976, Feltham, Middx on 10:44am Thu 16 Oct 08
Brad wrote:
steven976 wrote: I seem to recall MOTOROLA getting grants from the former SCOTTISH ENTERPRISE for siting a factory in Bathgate about 20 years ago. As soon as the term of the grant had expired, Motorola upped sticks!!.. NO CHANGE THERE THEN!!
Not true. If you have any evidence to the contrary, please let us know.
I'm still searching for the specific info, but in the meantime I suggest you take a look here:
http://management.si
licon.com/government
/0,39024677,11024043
,00.htm
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