Celestica Inc. shuts down factory in Philippines, 1000 jobs lost

MANILA – CANADIAN electronics firm Celestica Inc is shutting down its factory in the central Philippines, with the loss of about 1,000 jobs, the government said on Friday.

The company, which manufactures telecommunications equipment at the plant on Mactan island, just off the central island of Cebu, has informed the Mactan Economic Zone of its plans to shut down, officials of the zone said.

‘They are shutting down their operation due to market forces,’ the zone authority said, referring to the sharp cutback in the electronics industry in the face of the global financial turmoil.

The agency said Celestica Philippines had already tried cutting its working week down to four days in an attempt to save money and avoid layoffs but this was not enough.

The closure is expected to take effect by the end of August once Celestica Philippines completes all its clearances, the authority said.

The company first started operation in Mactan in 1989 as NEC Technologies but changed its name when it was acquired by Celestica in 2004.

It is the latest major electronics company in the Philippines to shut down or sharply cut the number of workers due to weakened demand brought about by the global slump.

In recent months, Intel Corp. has shut its facilities in the Philippines, with the loss of about 3,000 jobs while Texas Instruments laid off about 400 workers.

Other electronic companies have also resorted to lay-offs or putting workers on shortened work weeks or forced leave.

Philippine officials have warned that around 60,000 workers in sector might be affected by the downturn although industry leaders say a recovery is already taking shape. Electronic products account for about 60 per cent of the Philippines’ exports.

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