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“Intel not closing Penang plant”

PENANG, 22 Jan 2009: Penang Chief Minister Lim Guan Eng has denied that US chipmaker Intel Corporation will close its plant here and that 2,000 workers will lose their jobs due to the closure.

He clarified that the company had sought relocation of its two factories, namely PG6 and PG7, to the Kulim High-tech Park even though the state government has yet to receive any official letter on the relocation from Intel.

However, Lim admitted the company could be offering Voluntary Separation Schemes (VSS) to its employees, he told a press conference here today. But he refused to comment further until he received an official statement from Intel.

Intel, in a statement from Santa Clara in California yesterday, said it plans to close two existing assembly test facilities in Penang and in Cavita in the Philippines.

The move, the company added, was part of plans to restructure some of its manufacturing operations and align its manufacturing capacity to current market conditions.

Lim said: “There would not be any job losses for those working in Penang Intel as the multinational company is only consolidating their branches with their employees moving to Kulim.”

Intel’s Penang operations is currently home to an estimated 6,000 workers while its branch in Kulim, Kedah employs around 4,000 workers.  — Bernama


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