800 jobs go at computer chip plant (From Gazette Series)

800 jobs go at computer chip plant

3:02am Wednesday 15th October 2008

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About 800 jobs are to go at a US-owned computer chip factory in Scotland.

Freescale, which employs about 1,000 people in South Lanarkshire, had been looking for a buyer for the plant since September last year.

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

Freescale now says the plant will shut in spring 2009.

A spokesman told the Herald newspaper: "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.

"The company will now enter into individual consultation with impacted employees."

The company said previously that technology advances had resulted in falling customer demand for the products produced in East Kilbride.

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

First Minister Alex Salmond pledged government support for those facing redundancy after it emerged that the plant was facing closure. In June Mr Salmond said the shutting of the factory would be a "very severe blow".

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