Contractor lay-offs at Intel plant raise concerns over $500m project

CONCERNS WERE mounting yesterday for the future of a $500 million investment at Intel’s plant in Leixlip, Co Kildare.

Contractors working on the refurbishment of the Intel plant’s Fab 14 unit yesterday said they had been informed the project had been delayed and they were being laid off.

One contractor who spoke to The Irish Timeson condition of anonymity said up to 200 specialist construction, engineering and design staff were told the project was being put on hold.

The contractor said many of these workers had started on the contract only on Monday and some were stopping work immediately. A number of staff said they were cautioned yesterday against talking to the media.

A spokesman for DPS Engineering, which is involved in the design and project management of specialist parts of the refurbishment of Fab 14, said the firm was continuing to work for Intel and that all projects were on track.

Earlier this week an Intel spokesman said that while contracting companies may have spoken to staff, Intel’s policy was to not comment on the activities of its contracting firms.

Intel has been refurbishing Fab 14, an older building on its Leixlip campus, in anticipation of a new production line being located there. The global technology firm, which is the world’s largest producer of computer chips, said it would invest $500 million in the refurbishment.

Up to 850 construction staff have been working on the project and another 200 technical roles have been filled in anticipation of the new manufacturing line going live in 2013. Although no firm commitment had been made by Intel to place a manufacturing line in Leixlip, it was hoped the refurbished unit would be used to produce so-called 1270 chips.

Company sources suggested these chips would now be built at plants in Israel and in the US state of Arizona. Leixlip would be in line for the 1272 chips, but these will not go into production until 2013.

The Intel spokesman insisted, however, that there had been “no change to the plans for Fab 14”.

Intel set up in Ireland in 1989 and has invested more than $7 billion at its Leixlip campus. Almost 4,000 staff are employed there by Intel and third parties.