Invest Penang says no massive lay-offs despite M&As

SanDisk will be acquired by Western Digital and the deal is expected to be finalised by the third quarter of next year

PENANG: There is no massive retrenchment exercise in Penang despite various industries and businesses entering into mergers and acquisitions (M&A) activities, said the Director of Invest Penang, Datuk Lee Kah Choon.

He said on Tuesday M&As are commonly carried out, not only to consolidate operations, but also for reasons such as to increase market share and technology synergies.

He also confirmed that five major multinational companies (MNC) are entering into M&As, but there is no massive retrenchment exercise to follow.

" M&A activity is happening globally among semi-conductor and electric and electronic technology companies. Penang, as an electronic hub, with its many international companies, is invariably impacted," he told reporters during a media briefing on the Industry Outlook here today.

He said the five MNCs involved in the M&As are AMD Semiconductor, Motorola Solutions, SanDisk, Amphenol and Dell,but mostly in respect of their manufacturing facility.

"After the M&A exercise, only Amphenol's employees will be affected, with  the group consolidating its mobile consumer products division in the Asia Pacific.But, they are also hiring more for their two facilities in Bukit Minyak," he added.

Lee said AMD had entered into a joint venture with Chinas Nantong Fujitsu Microelectronics Co and this involved factories in Penang and China, with no plan to reduce the workforce in the state.

For Motorola, he said the company's manufacturing facility in Bayan Lepas will be taken over by Sanmina Corp in early 2016.

All existing employees will be transferred to Sanmina.

"SanDisk will be acquired by Western Digital and the deal is expected to be finalised by the third quarter of next year, while Dell has acquired EMC at US$67 billion (RM281 billion)," Lee said.

However, Lee who is also the Special Advisor to the Chief Minister denied that German automotive system maker, Blaupunkt Malaysia and HGST Technologies, a unit of Western Digital, are closing down their factories in Penang.

"I have contacted both and they have indicated that there is no such thing. As for rumours of a retrenchment by Western Digital, I was told there is no truth to it,," he said. - Bernama

Corporate News , Economy


Across The Star Online

Air Pollutant Index

Highest API Readings

    Select State and Location to view the latest API reading

    Source: Department of Environment, Malaysia