Leixlip plant still part of Intel's plans

INTEL’S IRISH operations will have to compete for investment against other locations but falling business costs could play to its advantage, according to Jim O’Hara, general manager of the technology giant’s Leixlip-based operations.

Last month Intel announced it was seeking 300 compulsory redundancies following the decision to mothball one of the four Leixlip factories and make it available for a future investment. This led to speculation that the multinational may be beginning to run down its Irish operations.

“Intel sees this site as it sees any other site; a large strategic investment,” said Mr O’Hara.

“As long as we do our job, there is no reason not to invest.”

Leixlip has not attracted any major investment since the $2 billion that went into the Fab24-2 factory, announced in May 2004.

Despite this Mr O’Hara said there was no sense that it was a crucial time for Leixlip to get a new project. He said Intel would make investments according to its plans to release new generations of computer chips.

“The roadmaps are always changing in response to demand,” said Mr O’Hara.

“They are always changing in response to the future scenario, which is always changing. Therefore the thing that we have to teach our people here is that we are always involved in change and there is always uncertainty.

“The only thing we can do about that is compete with what we have got and make it a very attractive position for the company when it requires capacity to expand.”

That formula has worked for 20 years and I have absolutely no doubt it will work for the next 20.”

He said falling energy and construction costs would help attract investment but one of the major competitive issues facing Intel in Ireland is the strength of the euro against the dollar.

“Myself and my senior colleagues spend a lot of time figuring out how we can make it attractive for Intel to continue to invest here. That’s a big task because that’s obviously the long term viability of the site,” said Mr O’Hara.

Mr O’Hara also confirmed that the parent corporation is backing his involvement in the Ireland for Europe group which is promoting a Yes vote in the upcoming Lisbon referendum. He said that while Intel would fight the recent €1.06 billion fine from the European Commission for anti-competitive behaviour it was still important that Ireland was at the “centre of European affairs”.