The plant repairs printed circuit boards and its closure comes after 65 people were made redundant in March, according to the report.

Meanwhile Jabil (St Petersburg, Florida), despite seeing sales climb 34 percent, said it could be facing a quarter of a billion dollars in charges, and announced it is planned to "realign" manufacturing capacity in certain higher cost geographies. The term "realign" is often used as a euphemism for making cuts and laying off staff.

The company said it would begin consultation with employees in the coming weeks and would seek the board of directors' approval and finalize its plans.

"Management currently estimates that the realignment could result in approximately $200 to $250 million in charges, which would involve plant closings and headcount reductions," Jabil said in a statement that accompanied its third quarter fiscal quarter results.

Jabil made a net income of $64.2 million on sales revenue of $2.6 billion in the third fiscal quarter of 2006. Sales increased 34 percent from $1.9 billion for the same period of fiscal 2005.

Jabil said that a significant portion of the charges would be recorded in the company's fourth fiscal quarter. The cash cost of such charges is currently estimated to be in the range of $150 million to $200 million over the course of the next two fiscal years.

By: DocMemory
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