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DIGITAL EQUIPMENT CORPORATION ANNOUNCES ITS INTENTION TO CLOSE HARDWARE MANUFACTURING FACILITY IN GALWAY, IRELAND

 MAYNARD, Mass., Feb. 25 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) informed its employees today that it intends to close its hardware manufacturing facility in Galway, Ireland. The company will retain its Galway-based European software development and distribution headquarters.
 The process for the plant closing, which will affect approximately 780 employees in Galway, will be a gradual phase-out of operations during the next twelve months. It is expected that this will be completed by February 1994. The work being carried out in Galway will be consolidated within Digital's worldwide manufacturing operations.
 The details of the planned closure were outlined today to employees at group meetings on the Galway site. Digital will offer the affected employees a number of benefits that include a financial support package based on years of service to the corporation.
 Edward B. McDonough, Vice President, Manufacturing and Logistics for Digital, said, "For more than three years, Digital has been restructuring its manufacturing function, including its extensive European-based operations, to adjust to the changes that are affecting the entire industry. Technology has advanced by orders of magnitude, increasing the efficiency with which products can be manufactured. The movement of computing power to semiconductors; the shift in customer demand to high-volume, low-margin commodity products; and the decreased demand caused by a soft worldwide economy have all been major contributors to an excess manufacturing capacity throughout the industry."
 McDonough continued, "Manufacturing will remain a core competency for Digital. Our goal is to position Manufacturing capacity to best serve our markets and to optimize the utilization of our assets. It is on the basis of this strategic intent - and not an issue of quality of work - that the decision was made to close the Galway plant. Since its opening in 1971, the Galway plant and its employees have made a significant contribution to Digital's success. This was a very difficult decision to make."
 Digital will retain its Galway-based European software headquarters, which employs approximately 350 people. In addition, it will continue to maintain its more than 350 sales and services personnel in Ireland.
 The corporation will work with local authorities, the Irish government, and the European Commission to find other parties who can put the 450,000 square-foot plant to use to generate employment in this region. Digital currently owns the facility.
 Digital Equipment Corporation, headquartered in Maynard, Massachusetts, is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its business partners deliver the power to use the best integrated solutions - from desktop to data center - in open information environments.
 -0- 2/25/93
 /CONTACT: Roddy Guiney, Galway, 353-091-54003; Rolf Olsen, Geneva ,


41 22 7094396; or Nikki Richardson, Maynard, 508-493-6369/
 (DEC)


CO: Digital Equipment Corporation ST: Massachusetts IN: CPR SU:

DH -- NE001 -- 0180 02/25/93 05:29 EST
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Feb 25, 1993
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