1,260 go as NEC shuts Scottish plant

NEARLY 1,300 workers are to lose their jobs after Japanese electronics giant NEC unveiled plans to mothball a plant in Livingston, Scotland. The group, blaming a plunge in demand from the cellphone sector, said the semiconductor factory would halt production from next April.

NEC cut 600 jobs at the plant in July but said at the time it hoped the site could be saved. But a spokesman said today there was 'no sign of recovery in the semiconductor market conditions'. It would consider reopening the plant should markets improve but gave no time frame. The 1,260 staff would be made redundant in March.

The move comes amid a rigorous reshape at NEC designed to slash its costs by 14%. Reeling from price competition and the global hi-tech slump, Japanese chip conglomerates have been withdrawing from low margin commodity DRAM computer memory chips.

West Lothian Provost Joe Thomas described the mothballing as a 'massive blow' to the area. Scottish Enterprise Minister Wendy Alexander said: 'The closure is due to a global downturn with the result that operations are being reduced across the world, not just Scotland.' An official from her department at the Scottish Executive had recently met NEC 'at the highest level'.

But Danny Carrigan, Scottish regional secretary and national officer for the Amalgamated Engineering and Electronics Union, said the decision was no surprise' 'Demand for semiconductors has plunged since the downturn in the telecoms industry really began to kick in around February. People thought the telecoms pot of gold would go on forever but it wasn't so.'

Scotland's 'silicon glen' has already suffered major job losses in 2001. Earlier this year Motorola confirmed plans to close its Bathgate plant, also in West Lothian, where more than 3,000 workers made mobile phones. Computer firm Compaq axed 700 workers at its facility in Erskine, Renfrewshire.