Taipei-Dynamic Electronics Co., a Taiwan-based printed circuit board (PCB) maker, said Wednesday that it is holding discussions with other businesses in the industry on the possibility of them absorbing some of its employees ahead of a massive layoff due to its impending plant closure.
Dynamic, which plans to close its plant in Taiwan and let go most of its 490 workers, said it is in talks with seven other PCB manufacturers that currently need a total of about 500 employees.
As part of the effort, Dynamic said, it will hold a job fair at the end of September to provide information to its employees about the openings at other PCB companies.
On Monday, Dynamic said it would lay off 420 workers at its Taoyuan plant, with effect from Oct. 15, due to years of losses in Taiwan.
The company said it plans to relocate its manufacturing business overseas but will keep its research and development center in Taiwan.
While the U.S. market accounts for only 2 percent of the Taoyuan plant's sales, the current trade frictions between China and the United States have created uncertainty among overseas buyers, which has resulted in an average 10-20 percent drop in orders to its plant in Taiwan, Dynamic said.
Currently, the workers at the Taoyuan plant are still employed and are receiving their regular pay, the company said, adding that they will also be paid compensation, in accordance with the law, when they are let go.
According to the Taoyuan City Department of Labor, some 132 immigrant workers from Thailand are also being laid off but are not covered under the Act for Worker Protection of Mass Redundancy and therefore were not reported among the 420 Dynamic workers.
The Thai workers, however, will all receive compensation, the department said.
In 2018, Dynamic was ranked as the 15th largest PCB maker in Taiwan and the 42nd largest in the world. Over the past three years, however, its Taiwan operations have lost NT$440 million (US$14 million), according to local media reports.
Dynamic posted a loss per share of NT$0.09 in the first half of this year, compared with a NT$0.99 loss per share over the same period of last year. For the whole of 2018, the company reported a loss per share of NT$0.86, compared with NT$0.03 in earnings per share in 2017.
With the auction of its Taoyuan plant in October, the company said, it is expected to book a profit of NT$300 million to NT$400 million in the fourth quarter of the year.
According to Dynamic's website, the company also has plants in Jiangsu and Hubei in China.
Source: Focus Taiwan News Channel