Flextronics Plant in Youngsville to Close

Rapid Response Team from the N.C. Department of Commerce will be deployed to the Flextronics, a manufacturing partner of Parata Systems

October 6, 2007

DURHAM COUNTY NC NEWS -- The Rapid Response Team from the N.C. Department of Commerce will be deployed to the Flextronics plant in Youngsville, which will close its manufacturing facility over the next six months. Flexitronics is headquartered in Singapore, Asia, with a network of facilities in 35 countries on four continents that designs, builds, ships, and services electronics products. Flexitronics is considered by the state as a key player in the information technology industry in North Carolina, which is one of the largest and most important industries located in North Carolina.

Youngsville is located in Franklin County, North Carolina, and is located approximately 20 miles northeast of Raleigh. Franklin County has an estimated population of 55,886 with Flextronics being the largest manufacturing employer located in the county, employing an over 600 people.

Franklin County, originally offered Flexitronics $5.5 million to locate in Franklin County, over $3 million of which went to retraining local textile workers for the technically sophisticated jobs at the local community college.

Furthermore, in 2006, Franklin County gave Parata Systems, a manufacturing partner of Flextronics, $100,000 in incentives to move $5 million in equipment from its Louisiana plant to the Flextronics facility in Youngsville. Those incentives were not tied directly to job creation. Meanwhile, Parata Systems did create 10 jobs at the Flextronics facility as part of a One NC Grant. Parata Systems agreed to accept the One NC Grant for $200,000 in matching funds from the state and Durham County to create 130 jobs over a three-year period.

Flexitronics representatives have stated the company will do everything possible to assist the Youngsville plant staff, including severance packages, local employee transfers, where possible, and provide job replacement assistance services.

Yesterday, Governor Easley said, "I have directed the Rapid Response Team to work with Flextronics and local employment partners to help employees begin the process of either finding new jobs or gain the training necessary to remain successful in our competitive economy."

The N.C. Department of Commerce's Division of Employment and Training is contacting Flextronics to determine what services might be needed. The team consists of representatives from state and local agencies including the local workforce development board, the Employment Security Commission and the N.C. Community College System.

The N.C. Department of Commerce's Rapid Response Team mission goal is to reduce the amount of time people are out of work in North Carolina, whether that is helping them find new jobs or ensuring they receive additional education, training or other services. The Rapid Response Team assists coordinate transitional services for employees who have lost their jobs due to a layoff or facility closure. Services may include job search and placement assistance, career counseling, labor market information and assessment of skills and needs for the displaced Flextronics employees.