STATS ChipPAC to close factory in Ulu Kelang Free Trade Zone outside of Kuala Lumpur, Malaysia and consolidate into Shanghai’s Xi Jiao Economic and Technological Development Zone
STATS ChipPAC to shut down Malaysia plant
Posted: 02 Jul 2013
FROM EETimes Asia
STATS ChipPAC has announced its plan to consolidate its leaded wirebond packaging and related test operations in Kuala Lumpur, Malaysia into its Qingpu, Shanghai, China operations over several phases in 2013 and 2014. The company also revealed the closure of its Malaysia plant by the end of next year.
Tan Lay Koon, president and CEO, STATS ChipPAC, said, “The announced plan will consolidate our manufacturing footprint into larger scale plants and achieve a more competitive cost structure over the longer term.”
The company expects to incur total charges of nearly $39 million, comprising employee severance and benefit costs of about $19 million, non-cash asset impairment charges of roughly $18 million and other associated costs of about $2 million. Of the total charges, nearly $37 million and $2 million will be incurred in 2Q13 and in 2014, respectively.
“The plant closure will affect about 1,100 of our employees in Malaysia, representing nearly 11 per cent of our total global workforce. The company will ensure that fair severance benefits and outplacement support will be provided to affected employees,” stated Koon.
Click here to see full article at EETimes.com
To search for business parks in South-East Asia visit Global Business Parks at:
South-East Asia Business Parks Industrial Parks and SEZs
Click here for a list of Business Parks and Industrial Parks in the Philippines:
List of Philippines Business Parks and Industrial Estates
Click here for a list of Business Parks and Industrial Parks in Thailand:
List of Thailand Business Parks
Click here for a list of Business Parks and Industrial Parks in Vietnam:
Vietnam Business Parks and Industrial Estates
More news about business parks and industrial parks on our Twitter page: #GlobalBizParks