Computer firm switches laptop work

The global laptop market has declined

The computer manufacturer NEC has said it plans to move production of laptops from its West Lothian factory to China, raising doubts over the fate of about 160 jobs.

The latest statement is unlikely to clarify the confusion over the company's plans for its Livingston plant.

Earlier on Monday, NEC's headquarters in Japan said the factory was to close but the Scottish Executive said it had not received confirmation of the move.

Later, NEC said it still needed production capacity in Europe for desktops and servers and the long-term viability of Livingston would be assessed.

The firm plans to look at the cost of maintaining production in-house or transferring it to a sub-contractor.

NEC CI is Europe's sixth largest manufacturer of personal computers, supplying the market with the Packard Bell brand.

Meeting demand

After NEC's first statement from Japan, which said the Kirkton plant was to shut, a Scottish Executive spokesman said: "We remain in close discussions with the company about the maintenance of production operations at Livingston."

West Lothian Council has called for an urgent meeting with Enterprise Minister Iain Gray.

Deputy leader Willie Dunn said: "The way that the news has been leaked over this weekend has been disgraceful.

Bristow Muldoon: "Deep concern"

"We are now trying to establish the facts."

NEC shed more than 1,500 jobs in Scotland last year with the closure of its semiconductor plant in Livingston.

The company has been affected both by a downturn in the market and competition and said it could reduce costs by switching work to China.

West Lothian has lost thousands of technology jobs in the past year, which saw the closure of Motorola's mobile telephone factory where 3,000 people were employed.

'Bounce back'

Livingston Labour MSP Bristow Muldoon told BBC Radio Scotland's Good Morning Scotland programme that the first announcement was a real economic blow.

He said: "My first reaction is that if this news is confirmed then there is obviously deep concern for the workers at the factory.

"Given that it has effectively come out from rumours in the Japanese financial press then it does concern me that staff at the plant may not have been advised by NEC of this news."

Many of those workers who have lost their jobs at NEC and Motorola over the past year have managed to secure employment elsewhere, said Mr Muldoon.

"I am sure that the West Lothian economy will bounce back," he said.

"The vast majority of job losses have been associated with the downturn in the electronics market and it has not really been a local factor and problems with the West Lothian economy."

Press leaks

Danny Carrigan, whose Amicus union has members at the factory, said: "I would certainly hope that the company would reflect very much on two things: one, the nature of the plant and if they can retain some jobs and secondly how this announcement has got out.

"Really, it is a tragedy for people to hear they are losing their jobs from the media and again it's coming out of the intenet, it's coming out of press leaks in Japan."

Stuart Duffin, of West Lothian Chamber of Commerce, said the area must now adapt to changes in the market and smaller scale plants employing between 200 and 250 people.