Almost 1,000 jobs lost in Derry
The North suffered a major economic blow today when it was confirmed one of its "blue ribbon" technology companies was closing a plant with the loss of nearly 1,000 jobs.
US-owned Seagate Technologies told 768 permanent and 159 temporary workers at their Limavady factory in Co Derry they were being made redundant in the second half of next year.
The plant produces components for computer hard disk drives.
A second Seagate plant a few miles away at Springtown in Derry where 1,381 workers are employed is unaffected, said the company.
Staff were informed of the decision at a mass meeting held in a huge marquee specially erected outside the plant during the weekend.
Seagate said the plant was no longer competitive on the world stage.
Plant manager Dr William O'Kane said the company deeply regretted having to take close the facility.
He said: "We have made great efforts over the past few years to maintain the competitiveness of the Limavady facility, but recent increases in global substrate industry capacity together with our competitors' lower labour costs have made the Limavady operation uncompetitive.
"Foreign exchange movements, shipping and utility costs are also contributing factors.
"We have examined several options to maintain some or all of the Limavady facility but none proved financially viable."
It is a serious blow to the North, where the power-sharing Executive just last week launched its programme for government based around boosting the economy .
A target of creating 6,500 - mainly hi-tech - jobs over four years through investment by foreign companies was announced by Finance Minister Peter Robinson.
The Seagate plant is just the kind of hi-tech knowledge based industry the Executive was seeking more of.
Workers believe work is being switched to a new plant in Malaysia where labour costs are far less than in the North.
Such a decision could have a serious effect on efforts by the Department of Enterprise, Trade and Investment to attract other similar companies to the North.
Seagate is currently the fourth largest manufacturing employer in the North - pumping some £60m (€85.7m) a year into the local economy.
The closure is a major turnaround on company plans less than two years ago.
In December 2005 Seagate announced a £83m (€118.6m) investment in the two company plants in the North and the creation of 300 jobs.
The North's jobs creation agency, Invest NI offered nearly £25m (€35.7m) towards the expansion - money it will now be looking to get back.
Seagate was established in California in 1979 and now employs 55,000 people worldwide and last year had revenues of close to £5bn (€7.1bn).
Reg Empey, the Ulster Unionist leader and Minister for Employment and Learning, pledged to do all to find work for those losing their jobs,.
He said: "Every effort will be made by me and my staff to help the employees gain new employment. I am making arrangements for my department to provide assistance through our district and local offices and local Employer contact team."
The district and jobs and benefits managers were ready to meet senior personnel in Seagate to assess how best to assist the workers re-engage with the Labour market - having regard for their skills and geographical location, he said.
John Dallat, the SDLP Assembly member for East Derry, said: "At Halloween and the lead-up to Christmas this is not the type of news people expected to hear following Peter Robinson's upbeat Programme for Government speech in the Assembly last Thursday.
"The question must be asked: 'Did Peter know this was coming when he told a hushed audience that he was creating 6,500 new jobs, or did his colleague Nigel Dodds, minister for Enterprise, Trade and Investment have an inkling?'
"My own guess is that they did given that they hold two of the most important ministerial posts in the Assembly and should know."
The Mayor of Limavady, Edwin Stevenson, said the news would devastate the town.
He said about half of the workforce came from the town, and the rest from across the North's North West, over the border in Co Donegal and from Eastern Europe.
"There have been rumours of something like this for a long time so this news is not a shock.
"However, a closure will be devastating for the borough, workers from the factory from further afield coming up to Christmas."
He added: "I know there are married couples working at the factory; what will those families do ?
Dawn Purvis, MLA, leader of the Progressive Unionist Party said she was very disappointed by the announcement.
"This appears to be a clear example of a multi-national company taking advantage of Northern Ireland's resources before moving on.
"This will have a devastating impact on the North West's economy. I can only hope that financial packages will be put in place to protect those facing immediate redundancy."
