Updated 6.50 p.m.

Prime Minister Joseph Muscat said in Parliament this evening that the situation at ST Micrelectronics was 'cyclical' and there was no cause for alarm.

He was replying to a request by Nationalist MP David Agius about whether he should give a statement to the House on the situation after some workers were ordered on forced leave.

Dr Muscat said the situation was not such as to warrant a statement. He said the situation at ST was cyclical. Referring to reports in another newspaper, he said it was not true that he had been asked to intervene with the Italian or French prime ministers.

Should the situation warrant, the government would step in and also inform the Opposition, Dr Muscat said.

The Times of Malta reported this morning that a drop in orders has forced ST to declare two mini shutdowns on one production line.

Andrew Mizzi, section secretary at the General Workers’ Union, said workers would have two shutdowns lasting two days each over the next three months.

“One of the company’s three production lines experienced a lack of orders and the company decided to have two mini shutdowns to cut down on costs,” Mr Mizzi said, adding workers would still get paid normally for the leave.

The drop in orders was believed to be part of a cyclical downturn and has happened in the past.

In 2009, the company had cut down its workforce as a result of the global downturn and high labour costs in Malta.

The Kirkop plant is the only back-end manufacturing facility ST has in Europe and it faces stiff competitive challenges from similar plants the company has in China.

Talks between the company, the union and the Government at the time led to an undisclosed State aid package intended to help the company retrain workers.