July 4, 2008

KLA-Tencor to Close Plant Here: High-Tech Manufacturer Planning to Consolidate Operations Elsewhere

By Dale Quinn, The Arizona Daily Star, Tucson

Jul. 4--A company that makes manufacturing controls and test products used by computer-chip makers plans to close its Tucson facility and consolidate operations at its headquarters in Milpitas, Calif., and in Singapore.

KLA-Tencor plans to shutter its plant at 3470 E. Universal Way, near East Valencia Road and South Alvernon Way, in July 2009, said company spokeswoman Meggan Powers.

About 100 employees who work there will be offered either relocation or a severance package, Powers said. Not all employees will be given the option of relocating, and Powers did not know exactly how many would be laid off.

Positions in engineering, manufacturing, management, and research and development will all be affected by the closure, she said.

The slowing economy has had a direct impact on the company, forcing KLA-Tencor to take cost-cutting measures, Powers said. The Tucson plant closure is one of those measures.

The company is based in Milpitas, which is in the Bay Area north of San Jose. The Tucson operations will be moved there and to a recently opened plant in Singapore.

"Eighty percent of our customers are located in Asia, and that's why we moved some of our manufacturing to Singapore," she said.

There was a round of layoffs at the Tucson location in August 2007, but the plant closure is not directly connected to those layoffs, Powers said.

KLA-Tencor also has a location in Chandler, which won't be affected by the current closure.

Did you know

KLA-Tencor came to Tucson in October 2006 when it acquired ADE Corp., which previously ran the South Side plant.

--Contact reporter Dale Quinn at 573-4197 or [email protected]


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