New plans for revival of semiconductor business

TURNAROUND plans are in place for a North East semi-conductor chip factory that was last year rescued from potential closure by the Government.

- TOM KEIGHLEY Business Reporter [e-mail]

The Ministry of Defence stepped in to buy the 310,000 sqft Newton Aycliffe plant formerly run by US corporation Coherent, in a deal worth a reported £20m that saved 100 jobs.

Now major efforts are under way to re-establish the capacity of the Octric Semiconductors factory, which had undergone downsizing under its US owners, with an investment plan signed off by its board.

Details of the plan are limited but it has been reported that military chiefs could invest up to £200m into the plant which has had a succession of owners since it was launched by Fujitsu in the early 1990s.

New accounts for Octric, covering the 15 months to the end of September show long term ambitions for the site, which employs around 100 people but had seen a workforce of nearly 260 in the last three years.