The plant has been in operation for 30 years and NEC Semiconductors Ireland currently employs 300 full- and 50 part-time workers in semiconductor manufacturing and related services. The company said it had begun discussions on compensation packages and professional out-placement support services.

Parent company NEC Electronics Corp. is forecasting group operating losses for the fiscal year ending March 31, 2006 and has been stepping up cost-cutting measures to improve its financial performance, according to NEC Semiconductors Ireland.

The consolidation of production from Ballivor into other international plants is part of a larger reorganization of NEC’s automotive IC manufacturing.

The decision to close the plant was announced to Ballivor employees by NEC Semiconductors Ireland managing director, Kenji Yamashiro, at a meeting at the plant Tuesday (Feb. 21).

“We are very proud of the quality of the work and the legacy of NEC Semiconductors Ireland, and appreciate the efforts of everyone at the Ballivor plant. Our immediate concern is the welfare of our employees, and we will do everything we can to make this transition as easy as possible for them. We would like to thank the Irish government and IDA Ireland for their strong support throughout our 30-year history,” Yamashiro said in a statement.

Approximately 70 percent of the ICs assembled at NEC Semiconductors Ireland are used by the automotive sector in engine management, dashboard controls, ABS brakes and intelligent airbag controls. The plant was one of the first companies backed by IDA Ireland to come to Ireland, and commenced production at Ballivor in 1976.

By: DocMemory
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