CHIEF MINISTER DENIES INTEL CLOSING PLANT

PENANG (Malaysia), Jan 22 (Bernama) -- Northern state of Penang Chief
Minister Lim Guan Eng has denied that United States Chipmaker Intel Corporation
will close its plant here and that 2,000 workers will lose their jobs due to the
closure.

He clarified that the company had sought relocation of its two factories to
the Kulim High-tech park, but admitted the company could be offering Voluntary
Separation Schemes (VSS) to its employees.

However, the state government has yet to receive any official letter on the
relocation from Intel, he told a press conference here Thursday.

Intel Corporation, in a statement from Santa Clara in California yesterday,
said it plans to close two existing assembly test facilities in Penang and in
Cavita in the Philippines.

The move, the company added, was part of plans to restructure some of its
manufacturing operations and align its manufacturing capacity to current market
conditions.

Lim said: "There would not be any job losses for those working in Penang
Intel as the multinational company is only consolidating their branches with
their employees moving to Kulim."

The chief minister admitted that Intel could be offering VSS to its
employees but refused to comment further until he receives an official statement
from Intel.

Intel's Penang operations is currently home to an estimated 6,000 workers
while its branch in Kulim, Kedah employs around 4,000 workers.
-- BERNAMA