Freescale Semiconductor, the US venture capitalist-owned technology giant, has confirmed that its Scottish manufacturing operation will close and that the bulk of its 800-strong workforce will lose their jobs.
MARK SMITH and MARTIN WILLIAMS
Freescale Semiconductor, the US venture capitalist-owned technology giant, has confirmed that its Scottish manufacturing operation will close and that the bulk of its 800-strong workforce will lose their jobs.
The impending closure of the company's East Kilbride plant, which is being conducted under a hitherto-secret project called Claymore, was revealed by The Herald last year.
A spokesman for the company said last night: "Freescale Semiconductor today concluded collective consultation with employees on strategic options for the company's manufacturing facility in East Kilbride.
"All possibilities for the factory have now been fully explored and the decision has been reached to cease manufacturing."
Freescale said that the plant was expected to close sometime between May and the end of July next year.
"The company will now enter into individual consultation with impacted employees," the company added.
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 with more functionality for the likes of increasingly sophisticated car dashboard displays, noting that products from East Kilbride are going into old vehicle models.
It is understood that some of the employees are attempting to challenge the legality of the company's slashed 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 in that."
He said he had spoken to Finance Secretary John Swinney and "expects that action for continued employment which has proven successful in previous big closures will be immediately in play".
