Feeds

Seagate counts cost of closing Scottish factory

Claims it won't be hurt by Dell/IBM deal

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

Seagate is taking a restructuring charge of around $60 million in its current third quarter, including the scrapping of its Scottish factory. The vendor said the one-off $50 million to $60 million charge would pay for the closure of the Livingston plant, consolidation of its customers service facilities and other action it was unwilling to detail. The future of the semiconductor plant had been uncertain since last year. In October, Seagate announced it was looking for a buyer, then later that month decided to sell the plant. At the time the factory employed around 262 people. This number is now down to about 50, production has stopped, and the closure will go ahead in July. The restructure will also include the closure of the two tape repair centres in Irvine, Scotland and in California. This facility will be consolidated in Mexico. The distribution centre, also in Irvine, will remain open according to Ian O'Leary, Seagate corporate communications manager for European operations. O'Leary added that the company would continue in its main business of storage: "Seagate is not a micro-electronics company. This area employed around 260 people, out of 83,000 in Seagate as a whole." He admitted: "The disk drive sector is a very competitive market and the price of storage is continually going down." O'Leary said Seagate would tackle this by concentrating on reducing costs and improving time to market. The US giant denied it would be hit by the IBM/Dell deal announced last week. Seagate previously supplied direct vendor Dell with disk drives, but Dell has announced it buy such items from IBM. O'Leary said: "We retain a very good relationship with Dell. Every indication is that Dell will continue a balanced, multiple-source strategy for their components." ®

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.