Unions say the closure would be a further blow to the North East Electronics firm LG Philips is to close its factory in County Durham with the loss of 761 jobs. It said production at its Durham plant, which opened in 1972, is expected to end towards the end of July.
The firm blamed the “adverse business situation” for the decision which it said it had made “with great regret”.
The Amicus trade union said it would be a “devastating blow” to the north-east of England’s already ailing manufacturing industry.
LG Philips plant director David Coppock said: “The decision is based solely on the continuing adverse business situation and in no way reflects on the performance of the employees here.
The fact is it is quicker, cheaper and easier to axe British workers than those elsewhere
Peter Skyte, Amicus “Without their hard work, commitment, flexibility and determination, this plant could have closed several years ago.” The company, which produces cathode ray tubes for use in televisions and computer monitors, said the main reasons for the decision were crippling price erosion and a shift in demand from Europe to Asia Pacific. It said consultation with employees and unions had started and it would offer a severance package and assistance for employees to find new jobs or training.
‘Lack of investment’ Peter Skyte, national officer of Amicus, said: “This is devastating news for a loyal workforce and a body blow to the local economy. “It demonstrates the complete lack of investment by the LG and Philips joint venture and other companies in future technologies in the UK. “The fact is it is quicker, cheaper and easier to axe British workers than those elsewhere.
” Durham City MP Gerry Steinberg raised concerns about the closure during prime minister’s questions at the House of Commons on Wednesday. Responding, Tony Blair said the area would receive government assistance and the government would do “all it could” to help those made redundant. The company, a joint venture between Korea’s LG and Dutch giant Philips, closed a plant in Newport, South Wales in 2003 with the loss of 870 jobs.
