The immediate fate of the Hyundai plant in Fife, clouded in uncertainty by Korea's economic turmoil, is expected to be known on Wednesday.

The Scottish Secretary, Donald Dewar, insisted on Tuesday he was optimistic about the long-term future of the Hyundai project.

Fate of plant in the balance

The company has so far refused to confirm reports that it is set to mothball the £3bn development for at least a year.

At the end of last month, Hyundai Semi Conductor Europe said: "The company wish to make it very clear to the media and the public that it remains fully committed to phase one of the project."

Phase One was set to create 800 jobs. And a proposed second phase would have given employment to a further 1,200.

After meeting Hyundai chiefs, Mr Dewar said: "It was a helpful meeting but clearly the Korean economy has presented problems to the company."

The Scottish Secretary said talks would be continuing on Wednesday between Scottish Office officials and executives of the company.

Mr Dewar said the company had tried to be constructive but they were both aware that there were difficulties.

But the Scottish Secretary stressed: "I am certainly not depressed about the project's future in the long term and we are trying to establish what will happen in the immediate future."
 

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