Union chief appeals to EC over Siemens factory

NEWS The UK's Manufacturing, Science and Finance Union (MSF) has written to the European commissioner for competition, Karel van Miert, demanding an investigation into Siemens' closure of its north Tyneside chip plant in the UK. The move follows Siemens' decision to reject two potential rescue bids for the Tyneside plant, and news that it now plans to invest in a joint venture with IBM at the US firm's plant in Corbeil-Essones outside Paris. Roger Lyons, director general of the MSF, said: "I have faxed Karel van Miert, the commissioner, and asked for some information as to what deal the French government has done to get this investment." Siemens denies there is any link between the French investment and the closure of the Tyneside plant, issuing a statement from Siemens chief executive Alan Wood saying: "These are different microchips - a later technology." The chip manufacturer has now been asked to pay back £18m of grants it received from the UK government to build the factory. But Lyons warned the government that "dealing with multinationals is a slippery process", he also said it should watch what action other governments are taking to ensure a level playing field for UK manufacturing. The Tyneside plant opened in February 1997, but its closure - and the loss of 1,100 jobs - was announced in July last year. Siemens claimed it was forced to close the factory because of the collapse in chip prices caused by the Asian economic crisis.