The Development Of STJ Plant

Download PDF

Response to media reports related to the development of ASM Pacific Technology’s Shenzhen Shatoujiao Plant

Due to Shenzhen government’s redevelopment plan of the Yantian District, Shenzhen ASM Micro Electronic Technology Company Limited (MET) of the Group is required to have its plant in Yantian District move out before October, 2014. The Casting Department will be relocated to the Group’s Huizhou plant whereas other operations will be relocated to Longgang, Shenzhen. Yantian and Longgang are both located in Shenzhen with approximately 40 minutes’ of driving distance in between. There are around 5000 staffs working at MET in the Yantian plant and the nearby Haipeng plant.

The Company offers 3 options to the Casting Department staffs:

1. They can choose to be relocated to work in the Huizhou Plant;
2. They can choose to work in the Haipeng Plant which is located in the vicinity of Yantian District. With the two options above, the staffs involved will have their salary, benefits and seniority remain unchanged; or
3. They can choose to terminate their employment contract with the Company in which case the Company will provide them with statutory financial compensation in accordance with Article 47 of the Labour Contract Law of China. One month salary will be paid for every one year of service.

The Company had many meetings with the local government regarding the relocation of the Yantian Plant. Based on advice from the Government as well as legal advice which the Company has sought independently, the company concludes that since the intra-city relocation from Yantian to Longgang will not affect the execution of existing employment contracts therefore it will not trigger any statutory financial compensation as stipulated in the Labour Contract Law of China.

The Company offers an incentive award to staffs who would be relocated to the Longgang Plant. The award scheme aims to encourage staffs to help to restore the productivity in the new plant at the soonest possible time. As for those staffs who wish to work in the Haipeng Plant due to individual special reasons, the Company will consider.