Cavite Town to Lose P50 M in Revenues with Intel's Closure

General Trias town in Cavite stands to lose an estimated P50 million in revenues annually with the impending closure of Intel’s manufacturing facility at the town's Gateway Business Park.

General Trias town administrator Hernando Granados said Intel's operation will definitely affect the income of the municipality. "I can say that it will affect the income of General Trias but instead of sulking, we would rather look for alternatives," Granados said in a telephone interview.

He noted that the Intel facility is one of the top revenue generators of the town, which has been awarded by a business group as one of the most business friendly local government units in 2007.

Though the local government has yet to receive official notice of closure, Granados said he has been hearing reports that the company is closing. He disclosed that one of the reasons for the closure was high electricity cost, which company officials have been complaining about since last year.

Intel has released a statement early this morning confirming earlier reports of closure. It said it plans to "restructure some of its manufacturing operations and align its manufacturing capacity to current market conditions."

The company is also closing four assembly test facilities -- two in Malaysia and two in the United States. - By Dennis Carcamo (Philstar News Service, www.philstar.com)

Source: Yahoo News Philippines