HP to shut US direct plant

HP to shut US direct plant

Hewlett-Packard has confirmed that it will shutter a computer manufacturing facility in New Jersey that it acquired as part of its merger with Compaq Computer.

The plant is used for assembling and packaging PCs, servers and iPaq handheld computers ordered direct through Compaq's Web site. The plant is one of four in the US responsible for handling online orders.

"It's the smallest of our four Compaq Direct facilities," said Roger Frizzell, an HP spokesman. "It really didn't have the sufficient scale to achieve the level of cost effectiveness ... without more investment."

About 300 jobs will be eliminated as a result of the closure, which is expected to be completed by the end of October, Frizzell said. Employees will be offered the chance to be relocated to new jobs at HP, and will receive a minimum of 12 weeks severance pay, the company said.

The manufacturing and assembly work handled by the plant will be transferred to the three other Compaq Direct facilities, located in Indianapolis, Indiana; Omaha, Nebraska; and Ontario, California.

Compaq acquired the four Compaq Direct facilities in January 2000 from PC distributor Inacom.

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