United Kingdom
Wales; East Wales; Monmouthshire and Newport
Location of affected unit(s)
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Computer, Electronic And Optical Products
26 - Manufacture of computer, electronic and optical products

315 jobs
Number of planned job losses
Job loss
Announcement Date
18 August 2006
Employment effect (start)
31 December 2006
Foreseen end date


The LG Electronics plant in Newport, south Wales is to close at the end of the year with the loss of 315 jobs. LG Electronics Wales, which assembles computer monitors on the site, blamed falling prices and expressed regret. One worker said staff were very depressed after being told the news before being sent home for the day. In a letter to workers, the company's managing director said there had been a 'great deal of speculation' about the plant's long term future. Production lines had been reduced from six to three but a return to profit 'unfortunately...has not materialised.' Welsh Enterprise Minister Andrew Davies said he was 'very disappointed' with the closure decision. 'The company has assured us that this decision in no way reflects on the quality of the workforce in Newport, but has been taken as a result of the intense global conditions for their products - particularly the rapid decline in price of the products they supply,' he said. Mr Davies said a team would be sent in to work with the company and the employees affected by the decision. 'We are also examining the local supply chain to ensure that any impact of this planned closure on any local companies is minimised,' he said. The company originally invested on the site in 1996 and had promised to bring 6,000 jobs to the area. Liberal Democrat Kirsty Williams was critical of the company's record in the area, and described the firm's investment as a 'white elephant'. She said: 'Instead of the major shot in the arm that the Welsh economy was promised, Newport got a pain in the neck - a small factory producing electronics and an embarrassingly large hi-spec white elephant.'


  • 18 August 2006: BBC News


Eurofound (2006), LG Electronics, Closure in United Kingdom, factsheet number 63923, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63923.