Electronics Company LG Philips recently announced it was to close its manufacturing plant at Durham, with the loss of some 761 jobs. Closure of the facility is blamed on the Dutch-Korean group’s failure to invest in new products, such as flat-screen displays. On the same day, Abbey announced it will be closing its call centre in Gateshead – with the loss of a further 235 jobs – following its acquisition by Banco Santander, Spain’s largest bank.
These two examples perhaps summarise the challenges the northeast economy has had to face over the last decade. LG Philips represents the foreign-owned sector, which has received various financial incentives to encourage it to remain as a major manufacturer and employer in the region. Abbey represents the more recent trend towards creating jobs though large-scale call centres in the region.
