LONDON LG.Philips Displays is blaming crippling price erosion and a shift in demand from Europe to Asia Pacific for its decision to close its CRT manufacturing facility in Durham. Production at the plant, which opened in 1972, is expected to finish towards the end of July 2005 and will result in the loss of 761 jobs.
David Coppock, plant director, said: “The decision is based solely on the continuing adverse business situation and in no way reflects on the performance of the employees here. Without their hard work, commitment, flexibility and determination, this plant could have closed several years ago.”
“We’ve seen a 30% fall in our prices over the past two years. The plant has incurred heavy losses and with no sign of recovery, we simply cannot sustain this position any longer. Now that this difficult decision has been made, we must do everything we can to support our employees.” The plant was originally owned by Philips but became part of the LG Philips merged operation in 2001 and last year produced 2.5million CRTs.