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ST Microelectronics demands millions to stay
By MaltaMedia News
May 11, 2008 - 10:00:00 AM
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ST Microelectronics, which employs around 2,200 workers, is asking the government for “tens of millions of dollars” in financial support so that it can continue operating from Malta revealed Finance Minister Tonio Fenech in The Sunday Times.
Whilst the company is said to be considering its operations elsewhere, possibly Asia, as labour costs have soared in the recent years, Minister Fenech is adamant to stick to a limit in its offer to support ST saying “the government cannot be expected simply to subsidise a wage differential which equals practically the full wages being paid to the present employees...especially if we are simply told a few years down the line that the company is still moving away.”
The Sunday Times said the future of ST in Malta would greatly depend on the upcoming annual general meeting when the current management is either reconfirmed or changed.
ST plants in Morocco and Armenia have already been closed down to make up for gross losses which in Malta are said to reach close to €60million.
© Copyright 2008 by MaltaMedia.com
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Latest update:
May 13, 2008 - 9:12:44 AM CET
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