As expected, Compaq yesterday announced consolidation plans for manufacturing plants in Australia and around the world, as part of the restructuring from the Digital acquisition.
The Australian Digital assembly centre will be consolidated into the Compaq configuration centre at Rydalmere as part of the company's merger. Compaq's director of manufacturing, Ray Muffett, said "around 20 to 30 people" would lose their jobs as a result of the move.
The transition will take three to six months to complete and Compaq said it will create "zero disruption to the delivery of customised Compaq and Digital product".
"You don't have to Einstein to figure out there's an overlap," Muffett said.
The current Compaq plant is 42,000 square feet but only about 80 per cent of that space is being used, Muffett said. He said volumes would increase with the addition of the Digital product line, but the plant would easily cope with it. However, he said expansion of the plant may happen sometime down the track.
The warehousing facility will remain at Digital's plant for the meantime, Muffett said.
The plans have affected the rest of the region, including the Digital facility in Taiwan, which will be phased out by the end of the year. The Digital facility in Singapore will be absorbed into the existing Compaq plant.
The Compaq plant in China will cease operation and its primary products will be manufactured by supplier partners in the same province. DeskPro PCs will be supplied by Start Digital Computer, a Compaq venture, as well as other Compaq plants.
Compaq operations worldwide are affected by the consolidations, which will result in a reduction of approximately 5000 employees globally.