Global contract manufacturer Flextronics International Ltd. is closing its 2-year-old manufacturing and assembly plant in Brno, the Czech Republic, which recently employed 2,400.
Flextronics blamed a slowdown in the electronics market and a decision to shift away from facilities that serve single customers. The Brno plant made computer modems for Thomson SA.
The decision will hurt Carclo Technical Plastics, which opened an injection molding plant in Flextronics' Brno industrial park in February. But the molder, a unit of Wakefield, England-based Carclo plc, said it still plans to expand the plant later this year, and hopes to attract business from other original equipment manufacturers with operations in Eastern Europe.
Flextronics will move the Thomson work to a plant in Zalaegerszeg/S rv r, Hungary, which already supplies Hewlett-Packard and Epson printer components. Flextronics has not decided whether Carclo's Brno plant will continue to supply the Thomson business, said Jutta Devenish, a Flextronics spokeswoman.
``The closure is nothing to do with the Czech Republic nor the factory nor its management. We have taken the decision to bring together factories with several products and several customers,'' Devenish said. Flextronics must adapt to suit changing conditions, she said.
Singapore-based Flextronics informed Carclo of the plan at the beginning of July, Devenish said.
Devenish said Flextronics operates ``one or two'' other European plants serving a single customer among its 40 manufacturing facilities in the region, and these may also be subject to consolidation.
Flextronics will complete the shutdown in the next few months, cutting about 1,000 jobs. The company will keep open its engineering and design section, which employs about 40 at the 123-acre industrial park.
Carclo officials said they never expected their Brno plant to be wholly dependent on Flextronics. Carclo spent $1.7 million on the Brno plant, which is equipped with 16 Demag presses. Carclo still plans to double the size of the operation later this year.
Flextronics' Zalaegerszeg/S rv r plant has 79 injection presses ranging from 25-1,050 tons of clamping force. In Europe, Flextronics operates five other plastics molding plants in Hungary, Ireland and Italy.