LG Philips Displays announced today that it plans to close its plants in Newport, Wales and Southport, England.
The decision is based on business and economic conditions, which are ‘characterised by an increasingly competitive and consolidating industry,’ according to the company.
The company’s plant at Newport in South Wales produces colour display tubes (CDT) for monitors and colour picture tubes (CPT) for televisions as well as deflection yokes.
A sharp decline in the market for CDTs, due to increasing competition from other display technologies also supplying products for use in computer monitors, and severe downward pressure on prices for CDT and CPT, are the primary reasons for the closure.
The Southport plant produces ferrite powder for deflection yoke rings, which are used in the production of computer and television tubes. The decision to close the plant was taken when ‘it became clear the site was simply no longer viable’. This is because the powder it produces for the manufacture of television tubes can now be sourced much more economically in China. Tool supplies can now also be provided by local manufacturers to the LG Philips Displays plants in China and Poland.
At Newport, 870 jobs will be lost when production ceases in the middle of August 2003, while 71 jobs will go at Southport when that plant closes at the end of this year or early 2004.