Microchip factory cuts 800 jobs

Jobs at the plant have been under threat since September last year

About 800 jobs are to go at a US-owned microchip factory in East Kilbride after the firm confirmed plans to cease production there.

Freescale Semiconductor had been looking for a buyer for the plant since September last year. However, in June the firm conceded it would close.

The company now says the factory will shut in Spring 2009.

It said previously that technology advances had resulted in falling demand for 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.

Workers arriving at the East Kilbride plant this morning said news of the closure was not a big surprise.

It is a very sad day for the company. Motorola has been in Scotland for a long time Freescale worker

One worker, who has been at the plant for 7 years, told the BBC Scotland news website: "This has been on the cards for a while so it's not a huge shock.

"The plant has been up for sale on an estate agent's website for sometime now so people saw this announcement coming."

The man, who didn't want to give his name, said he worked in the engineering unit at Freescale.

He said he thought his job was safe for the moment as the cuts would come in the manufacturing department.

He added: "I feel very sorry for the manufacturing workers who will lose their jobs.

"It is a very sad day for the company. Motorola has been in Scotland for a long time. It has a long history here so it's sad to see them pull out."

Another worker from the design division at the East Kilbride site said: "I'm not one of the workers affected by this. Our unit will remain open but it's a huge disappointment for those who work in the factory."

'Veil of secrecy'

Unite, the union which represents workers at the microchip factory, called on the Scottish Government to include the manufacturing industry in its strategy to save the Scottish economy.

Jimmy Farrelly, senior industrial officer, said: "This announcement comes as a bitter blow to the workforce at Freescale particularly in the current economic climate.

"Although the decision comes as no surprise to Unite we have been extremely frustrated by the lack of transparency and the veil of secrecy with which Freescale has operated.

"The workforce deserve so much better than this given the hard-work they have shown down the years."

He added: "Unite is clear that the Scottish Government must take immediate action to develop a proper strategy for manufacturing in Scotland."

The firm makes microchips for use in mobile phones and car engines

The Scottish Government said: "This is disappointing news and will obviously be a serious blow to the facility's employees and their families.

"Freescale has not rushed into this decision - it has been reached at the end of a lengthy process which reflects the particular markets the company operates in."

A government spokesman said "every effort" had been made to help the company find an alternative solution.

He added: "Until the final closure, we'll continue to try find a future for the site.

"Ministers made that clear in conversations with the senior company executives and Scottish Development International will continue to work closely with the company.

"Government will stand ready to do all it can to help anyone who loses their job."