Infineon to close three fibre optics plants

25th January 2005, Comments 0 comments

25 January 2005, MUNICH - German semi-conductor concern Infineon announced on Tuesday the closure of three fibre optics factories with the loss of 350 jobs and predicted 2005 would be "a difficult year" for the industry. Infineon chairman Wolfgang Ziebart told the annual meeting in Munich three plants - in Berlin, Munich and Longmont in the United States - would be shut down. The closure of the Berlin factory will affect 280 jobs alone. Employees are to be offered jobs elsewhere in the group, but compulsor

25 January 2005

MUNICH - German semi-conductor concern Infineon announced on Tuesday the closure of three fibre optics factories with the loss of 350 jobs and predicted 2005 would be "a difficult year" for the industry.

Infineon chairman Wolfgang Ziebart told the annual meeting in Munich three plants - in Berlin, Munich and Longmont in the United States - would be shut down.

The closure of the Berlin factory will affect 280 jobs alone. Employees are to be offered jobs elsewhere in the group, but compulsory redundancies cannot be ruled out, Ziebart said.

A small part of the loss-making fibre optics business is to be sold to US firm Finisar which will be taking on know-how and stock in the fibre optic transceiver segment in a deal worth nearly USD 50 million.

Infineon originally wanted Finisar to take on the company's entire fibre optic activities including its 1,200 workforce but the deal fell through. The German concern will now retain ownership of its remaining fibre optic businesses, which it plans to restructure.

The company reported on Monday that its sales dropped in the first quarter of the 2004-2005 business year and warned of a further slowdown ahead because of the decline of the dollar and lower demand in the worldwide semiconductor market. 

DPA

Subject: German news 

 

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