LG Philips axes 1,000 jobs as factories close

Two LG Philips factories – one in Wales and one in England – are set to close with the loss of nearly 1,000 jobs, it has been announced today.

At Newport, 870 jobs will be lost when production ceases in the middle of August 2003, while 71 jobs will go at Southport when that plant closes at the end of this year or early 2004.

LG Philips Displays said that consultations with employees and unions were now under way at the effected factories. The company said that the decision was based on "business and economic conditions", which were characterised by an "increasingly competitive and consolidating industry".

The company’s plant at Newport produces colour display tubes (CDT) for monitors and colour picture tubes (CPT) for televisions as well as other components.

A sharp decline in the market for CDTs, due to increasing competition from other display technologies also supplying products for use in computer monitors, and severe downward pressure on prices for CDT and CPT, are the primary reasons for the closure, said the company.

Phil Styles, general manager of manufacturing at Newport, said: “The decision to close was made with great regret and is based solely on the continuing adverse business situation. It in no way reflects on the performance of the employees at the plant, who have worked hard and demonstrated considerable commitment over these past five years.”

The Southport plant produces ferrite powder for deflection yoke rings, which are used in the production of computer and television tubes. The decision to close the plant was taken when it became clear the site was "simply no longer viable".

LG Philips said this was because the powder it produces for the manufacture of television tubes can now be sourced much more economically in China. Tool supplies can now also be provided by local manufacturers to the LG Philips Displays plants in China and Poland.

Peter Brotherton, site manager Southport said: “Despite all the efforts of everyone at the Southport plant, we cannot match the prices of products sourced from China and Poland. So we must now work professionally to complete the shut down process while doing everything possible to help our people secure new jobs. Where there are employment opportunities, we have to make sure that our people are in the best position to grasp them.”

(GMcG)