Toshiba quits S'pore without fanfare
On Wednesday, its factory at Alexandra Distripark downed its
shutters for good.
AFTER 27 years of operations and a series of retrenchments, Toshiba
Singapore finally pulled the plug on its entire manufacturing
operations here.
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Quietly and without much fanfare, the Japanese electronics giant
confirmed on Friday that it has permanently shut down its
manufacturing division in Singapore, which is based at the
Alexandra Distripark along Pasir Panjang Road.
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A Toshiba Singapore spokesman told Today that a total of 21 staff
out of a group of 40-odd workers were axed from the payroll as
the factory closed for good on Feb 1 ironically the day many
Singaporeans returned to work after the Chinese New Year
celebrations.
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While the exact reason for the closure is not immediately known,
soaring operations and rental costs are believed to have played a
part in the decision.
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Ten years ago, Toshiba Singapore shifted part of its production of
televisions to Jakarta, before moving the remaining portion to
Malaysia last year.
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A spokeswoman, however, said that despite the closure of its
manufacturing division, the company's other units in Singapore,
such as its service centres, remain unaffected.
.
However, she declined to say how many people were hired in these
units.
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At its peak in Singapore, Toshiba employed about 1,600 people in
its manufacturing arm, said a retrenched worker, who spoke on
condition of anonymity.
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But for him, the writing has been on the wall for some time.
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The 55-year-old production material manager, who has been with
Toshiba Singapore since Day 1, said he was "not surprised" as
retrenchments had taken place in phases over the years.
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He estimated that "more than 1,000" people have been laid off in
total.
.
"It's been a gradual process, we had about 1,600 people at the
beginning, before the numbers were reduced to 200 about four years
ago," he told Today.
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Of the colleagues who still remain, he said six more workers would
be retrenched next Friday, while the rest will be transferred to
the company's Research and Development department at the Alexandra
Technopark.
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When asked to sum up the mood at the office last week, the source
said it was one of acceptance.
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"We understand that it is difficult for any manufacturing company
to survive here. For one thing, the rental is so expensive ... But
it's okay, I'm trying to find a new job, maybe in the supply chain
or logistics areas," he said.
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Toshiba Singapore is a subsidiary of the US$53 billion ($86
billion) Toshiba Corporation, one of the world's largest
manufacturers of electronic and computer equipment. It employs
about 165,000 employees worldwide.
.
The closure of the Toshiba Singapore plant comes less than a year
after another major manufacturing firm, Maxtor, shut down its Ang
Mo Kio facility and shed up to 5,000 jobs.
On Wednesday, its factory at Alexandra Distripark downed its
shutters for good.
