Hundreds of jobs 'likely to go'

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More than 800 jobs are likely to be lost at a computer chip factory in East Kilbride, its owners have admitted.

Freescale had been looking for a buyer for its South Lanarkshire plant since September of last year.

But the US-based firm, which bought the factory from Motorola four years ago, has conceded that the most likely option is now for the factory to close.

The local MSP, Andy Kerr, told BBC Scotland that the announcement was "devastating" for the town.

The company said that as a sale appeared unlikely, it had agreed with employees that the focus should now be placed on closure.

A Freescale spokesman said: "Following the announcement that a sale of the East Kilbride factory looks unlikely, Freescale and its employee representatives have now engaged in formal consultation on the remaining options."

'Marketed heavily'

He added: "During the recent consultation process, employees fully examined the company's business case for East Kilbride manufacturing operations and explored the viability of all possibilities for the factory in light of customer requirement forecasts.

"Agreement has been reached with the employee forum that consultation will now move to focus on the proposal to close the East Kilbride factory.

"All other viable options will remain open for consideration during the consultation period."

Mr Kerr said he expected the plant to close early next year.

He added: "The company has had this plant on sale for a number of months. It has been marketed heavily by Scottish Enterprise and by the company itself but there has been no buyer.

"I believe that this step is simply an indication of what will come probably come in early 2009, that sadly the plant will close."

Freescale's factory was set up by Motorola in 1969 to design and manufacture embedded microchips for use in mobile phones and car engines.

The company has previously blamed technology advances in the semiconductor industry which have resulted in a long-term trend of falling customer demand for the products produced at the plant.

In July last year it announced it would carry out a review in light of falling sales. The company had hoped to sell the factory as a going concern.