Fears that STMicroelectronics will eventually close its plant at Kirkop or, at best, drastically reduce its operations, persist notwithstanding declarations by a senior executive that there are no plans for more factory closures in view of the posting of a positive performance and expanding sales and profit margins.
The giant microchip maker's chief operating officer, Alain Dutheil, said a few days ago the company had no plans to close any more factories following the closure of three plants in the US and in Morocco last year.
In view of the fact that STM has asked the government for a multi-million-dollar financial package to support its Kirkop operations, the Finance Ministry was asked what it makes out of Mr Dutheil's statement.
"All there is to say at the moment is that the government has positively noted the announcement by STMicroelectronics," a spokesman said.
The government has made a counter-offer to the company's request for the financial package and is still awaiting a reply.
Industry analysts said the future of the Kirkop plant depended on a number of factors, foremost among which were labour costs and the euro-dollar exchange rate.
It has been announced that the Franco-Italian company is expecting its revenue in the second quarter of this year to grow by anything between 10 and 16 per cent over the same period in 2007. It is also forecasting a gross profit margin of about 37 per cent.
STM says the semi-conductor market will grow by between 4 and 6 per cent but analysts forecast a growth of 4.7 per cent.
Company president Carlo Bozotti was quoted by the French Les Echos financial news service as telling an analysts' meeting in London that his company is very confident that there will be an improvement.
He admitted that the group's biggest challenge is that of the dollar. "If the US currency, in which the company carries out almost all its sales, regained the level of two years ago, our financial performance would be really remarkable," he was quoted as saying.
Mr Bozotti was reported to have told the analysts that he plans to dispose of the "least performing" activities.
The French news service quoted Mr Duthiel's statement that there are no plans to close down other plants.
From 25 in 2005, the number of factories will stabilise at 14 in mid-2009, he was reported saying. "We are going to freeze production capacity, except for the Crolles site in Isère, and will increase outsourcing, in an attempt to cut costs and to be less subject to the fluctuations of a very cyclical market," he explained. The aim, according to him, is to outsource 20 per cent of total manufacturing by the first quarter of 2010, as against the present 7 per cent.
STMicroelectronics is one of the world's largest semi-conductor companies with net revenues of $10 billion last year.
It was set up in 1987 by the merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France. Since its formation, ST has grown faster than the semi-conductor industry as a whole and it has been one of the world's Top 10 semi-conductor suppliers since 1999. According to the latest industry data, ST is the world's fifth largest semi-conductor company with market leadership in many areas.
According to data available online, the group totals over 45,000 employees, 16 advanced research and development units, 39 design and application centres, 13 main manufacturing sites and 78 sales offices in 36 countries.
The giant microchip maker's chief operating officer, Alain Dutheil, said a few days ago the company had no plans to close any more factories following the closure of three plants in the US and in Morocco last year.
In view of the fact that STM has asked the government for a multi-million-dollar financial package to support its Kirkop operations, the Finance Ministry was asked what it makes out of Mr Dutheil's statement.
"All there is to say at the moment is that the government has positively noted the announcement by STMicroelectronics," a spokesman said.
The government has made a counter-offer to the company's request for the financial package and is still awaiting a reply.
Industry analysts said the future of the Kirkop plant depended on a number of factors, foremost among which were labour costs and the euro-dollar exchange rate.
It has been announced that the Franco-Italian company is expecting its revenue in the second quarter of this year to grow by anything between 10 and 16 per cent over the same period in 2007. It is also forecasting a gross profit margin of about 37 per cent.
STM says the semi-conductor market will grow by between 4 and 6 per cent but analysts forecast a growth of 4.7 per cent.
Company president Carlo Bozotti was quoted by the French Les Echos financial news service as telling an analysts' meeting in London that his company is very confident that there will be an improvement.
He admitted that the group's biggest challenge is that of the dollar. "If the US currency, in which the company carries out almost all its sales, regained the level of two years ago, our financial performance would be really remarkable," he was quoted as saying.
Mr Bozotti was reported to have told the analysts that he plans to dispose of the "least performing" activities.
The French news service quoted Mr Duthiel's statement that there are no plans to close down other plants.
From 25 in 2005, the number of factories will stabilise at 14 in mid-2009, he was reported saying. "We are going to freeze production capacity, except for the Crolles site in Isère, and will increase outsourcing, in an attempt to cut costs and to be less subject to the fluctuations of a very cyclical market," he explained. The aim, according to him, is to outsource 20 per cent of total manufacturing by the first quarter of 2010, as against the present 7 per cent.
STMicroelectronics is one of the world's largest semi-conductor companies with net revenues of $10 billion last year.
It was set up in 1987 by the merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France. Since its formation, ST has grown faster than the semi-conductor industry as a whole and it has been one of the world's Top 10 semi-conductor suppliers since 1999. According to the latest industry data, ST is the world's fifth largest semi-conductor company with market leadership in many areas.
According to data available online, the group totals over 45,000 employees, 16 advanced research and development units, 39 design and application centres, 13 main manufacturing sites and 78 sales offices in 36 countries.