Brief: IBM to close Hungarian hard-drive plant

IBM will close its Hungarian hard disk drive plant by early next year because of reduced customer demand, the company said today.

The closure, scheduled to take place by the second quarter of next year, won't affect IBM's agreement to sell its hard-drive business to Hitachi Ltd., according to IBM spokesman Jay Cadmus. That deal is expected to close by the end of this year (see story).

The plant in Szekesfehervar, Hungary, opened in 1995 and employs about 2,100 IBM workers, who will be laid off. About 1,600 contract employees working at the plant, and around 200 North American IBM employees working on related business, will also lose their jobs, Cadmus said.

The plant in Hungary is one of 10 IBM hard disk drive manufacturing and development facilities; others are located in the U.S., Mexico, Germany, China, Japan, Thailand and Singapore. While some of the facilities also handle work other than hard disk drive operations, the majority of the plants will be transferred to Hitachi once the sale closes, Cadmus said.

Copyright © 2002 IDG Communications, Inc.

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