SyQuest to Shut Malaysian Plant, Retrench 1,000 Workers

By Julian Matthews

November 12,1998 (KUALA LUMPUR) — Removable disk drive maker SyQuest Technology Inc. will shut its manufacturing plants in Penang and displace almost 1,000 workers by year’s end, a government source said.

“About half of the 968 workers are to be retrenched by the end of November, and another half by December,” he said.

The source said the company attributed the closure to a fall in product demand, heavy losses incurred over the past two years and the inability of its headquarters to raise new capital.

The Penang facility has left a recorded message on its main telephone line stating it has shut down temporarily from Nov. 2 to Nov. 15 and would resume operations on Nov 16. Sources said workers were told a new product line would be introduced when the plant was re-opened.

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