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29/10/2007
Dodds Meets Seagate Bosses As Limavady Jobs Axed
It has now been confirmed that Seagate is to close its factory in Limavady.
The closure will take place in the second half of next year, with the loss of more than 900 jobs.
In response, Economy Minister Nigel Dodds has met with senior management of Seagate, as well as the Mayor of Limavady, Edwin Stevenson and local representatives.
Seagate said today it would immediately commence a formal redundancy consultation process with its Limavady employees.
The American-owned company – which currently makes components for hard disc drives – called all staff to a meeting this afternoon where they heard the bad news.
The Minister said: “This decision is hugely disappointing for the workforce, the North-West and for the wider economy.
“Seagate has explained to Invest NI the changes in market dynamics which have led it to this decision.
“I have been assured that this decision is not a reflection of the performance of the Limavady plant or its workforce, but is a direct result of significantly lower wage costs in Asian competitors, foreign exchange and shipping costs, which have created a competitive cost gap of some £15million per year.
“I am glad to say that Seagate’s wafer fabrication facility in Springtown, Londonderry, will not be affected by today’s announcement. The Springtown plant, where over $70million has been invested this year alone, will continue its role as the supplier of over 80% of all Seagate’s read-write heads globally.
“I have dispatched senior officials from Invest NI to work with the company and the Department for Employment and Learning as a matter of utmost urgency on a joint approach to re-train and re-skill the affected staff. I have also asked senior officials in Invest NI to be available to discuss the options for attracting future potential investment in the area with local representatives.
“I will be coordinating urgently with the Department for Employment and Learning, to ensure that everything practicable is done to assist the people affected by the job losses.
“This situation clearly illustrates the need for Northern Ireland business to be competitive and to concentrate on higher added value products and services," he said.
(BMcC)
The closure will take place in the second half of next year, with the loss of more than 900 jobs.
In response, Economy Minister Nigel Dodds has met with senior management of Seagate, as well as the Mayor of Limavady, Edwin Stevenson and local representatives.
Seagate said today it would immediately commence a formal redundancy consultation process with its Limavady employees.
The American-owned company – which currently makes components for hard disc drives – called all staff to a meeting this afternoon where they heard the bad news.
The Minister said: “This decision is hugely disappointing for the workforce, the North-West and for the wider economy.
“Seagate has explained to Invest NI the changes in market dynamics which have led it to this decision.
“I have been assured that this decision is not a reflection of the performance of the Limavady plant or its workforce, but is a direct result of significantly lower wage costs in Asian competitors, foreign exchange and shipping costs, which have created a competitive cost gap of some £15million per year.
“I am glad to say that Seagate’s wafer fabrication facility in Springtown, Londonderry, will not be affected by today’s announcement. The Springtown plant, where over $70million has been invested this year alone, will continue its role as the supplier of over 80% of all Seagate’s read-write heads globally.
“I have dispatched senior officials from Invest NI to work with the company and the Department for Employment and Learning as a matter of utmost urgency on a joint approach to re-train and re-skill the affected staff. I have also asked senior officials in Invest NI to be available to discuss the options for attracting future potential investment in the area with local representatives.
“I will be coordinating urgently with the Department for Employment and Learning, to ensure that everything practicable is done to assist the people affected by the job losses.
“This situation clearly illustrates the need for Northern Ireland business to be competitive and to concentrate on higher added value products and services," he said.
(BMcC)
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