THE Compaq Computer Corporation confirmed yesterday that it is to
invest #25m in another extension at its Erskine, Renfrewshire, plant
which will create up to 450 jobs.
The Texas-based company, which in only seven years has established
itself as one of the ''big three'' of the personal computer industry,
built its first European manufacturing plant at Erskine two years ago.
Before the first production units were shipped from the plant Compaq
was announcing an extension and yesterday's announcement will bring the
total invested in the facility to #46m. The plant, which has a
550-strong workforce, will employ about 1000 when the extension is
completed.
Mr Eckhard Pfeiffer, president of Compaq's European and international
division, attributed the rapid expansion at Erskine to the ''huge
surge'' in demand from the markets served by the plant for the company's
personal computer products.
Last year international sales increased by almost 150% and in the
first three months of this year sales outside the United States
accounted for 46% of corporate revenues. According to independent
research Compaq has emerged in the same period as the second biggest
supplier of personal computers for business in Europe. Rapid growth in
Europe and the international market is forecast for the foreseeable
future.
''Had we not had the Erskine plant in place we could not have have met
the massive increase in demand for Compaq personal computers in Europe
during 1988,'' added Mr Pfeiffer.
The announcement was welcomed by Scottish Secretary Mr Malcolm Rifkind
and Scottish Development Agency chief executive Mr Iain Robertson. Mr
Rifkind said it enhanced Scotland's position as a European centre of
excellence in the information processing industry.
Mr Robertson commented: ''This endorsement of Scotland as a strong
base to serve the European market will be noticed around the world and
give a further boost to both Scotland's inward investment efforts in the
run-up to 1992 and our indigenous electronics industry.''
However the company confirmed that this would be the final expansion
at Erskine because no more than 1000 people could be employed on the
42-acre site without damaging the local environment, a risk which it was
not prepared to take.
It will be looking for more manufacturing facilities in Europe, but
there are no plans for further expansion in Scotland. Mr Robertson and
the company declined to disclose the amount of Scottish Office grant
allocated to the extension.
Compaq will require staff to work on the entire personal computer
manufacturing process, from senior engineers to assembly workers.
Recruitment will be carried out over the next three years. Only about
five per cent of workers are recruited from the unemployment register
and, apart from senior engineers, the company said it had not
encountered a skills shortage. About 1500 have applied for jobs with the
company in the last two years.
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