Lexmark is closing Scotland plant, to shed 700 staff |
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Published
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Wed, 25 Jan 2006 20:05
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LONDON: U.S. printer maker Lexmark is closing down its plant in Rosyth in Fife, Scotland, leading to loss of jobs for 700 people. The company earlier announced that its quarterly profits had fallen sharply owing to a slump in sales of printers and replacement ink and toner.
A company spokesperson said at least 500 jobs will be rendered redundant by April and the rest when the factory finally closes down.
The company had posted quarterly profits of $82 million and its share price had risen by 12 per cent on news of the "global restructuring".
The company said high production costs and over-capacity in the industry had led to this situation and it now plans to have its new product lines made in low-cost Mexican and Philippine plants. Worldwide, the company will be shedding some 1,400 jobs. The Rosyth plant assembles colour and monochrome cartridges for the company's range of ink jet models.
The company started operations of its Rosyth plant in 1995. Interestingly, it had received government grants totalling 11.7 million pounds against its 48.5- million-pound investment in the plant. It may have to pay back a tiny fraction of this amount to the government. The grants were made in the form of regional selective assistance.
The Scottish Executive said it will have talks with the firm about repaying the latest of the grants-- 275,000 pounds -- as the obligation period for this grant has not expired.
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