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Digital Equipment Corporation
Maynard, Massachusetts 01754-2571
Editorial contact:
Nikki Richardson
(508) 493-6369
DIGITAL ANNOUNCES INTENTION TO PHASE OUT
OPERATIONS AT ALBUQUERQUE, NEW MEXICO
AND CHIHUAHUA, MEXICO MANUFACTURING PLANTS
Work will be consolidated within other existing Digital plants,
primarily in North America
MAYNARD, Mass. -- July 8, 1994 -- Digital Equipment Corporation
informed its employees today that it intends to phase out the
operations at its Albuquerque, New Mexico and Chihuahua, Mexico
manufacturing plants. The Albuquerque plant, which currently
employs approximately 440 people, performs assembly, testing and
integration of computer systems, as well as order consolidation and
shipping.
The Chihuahua plant currently employs approximately 630 people
doing assembly and testing of computer modules.
The process for the phase-out will be a gradual reduction of
the workforce over the course of the next six months. The
manufacturing work done at the facilities will be consolidated
within existing Digital plants, primarily in North America. It is
expected that the process will be complete by January of 1995.
The details of the process were outlined today to employees in
group meetings held at the two facilities. Digital will offer the
affected employees a number of benefits including a financial
support package based on years of service to the corporation;
continuation of medical, dental and life insurance for a specified
period and outplacement assistance.
Dan Jennings, Digital's vice president of Worldwide
Manufacturing, said, "Digital's strategic redirection program is
designed to strengthen our competitive position in core markets to
resume profitable growth. That competitive position is much
enhanced by the manufacturing function making the most efficient
use of our existing capacity. Over the years, the people in our
Albuquerque and Chihuahua facilities have made significant
contributions to Digital's success and it was very difficult to
make this decision to close the plants, but the company's
commitment to return to profitable growth makes this consolidation
of North American manufacturing resources necessary."
The disposition of the sites has not yet been determined. The
Albuquerque site is owned by Digital and the Chihuahua site is
leased. The corporation will be working with country, state and
local governments, as well as outside agencies, to find external
productive uses for the plants.
Digital Equipment Corporation is the world's leader in open
client/server solutions from personal computing to integrated
worldwide information systems. Digital's scalable Alpha AXP
platforms, storage, networking, software and services, together
with industry-focused solutions from business partners, help
organizations compete and win in today's global marketplace.
####
Note to Editors: Digital, the Digital logo and Alpha AXP are
trademarks of Digital Equipment Corporation.
CORP/95/560
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