Qimonda to close US plant

Looking for Investors to keep afloat.

Published Wed, Feb 4 2009 2:51 PM CST   |   Updated Tue, Nov 3 2020 12:37 PM CST
German memory manufacturer Qimonda is having a rough time. Qimonda which is a spinoff of Infineon has been having financial problems for some time and has just announced that it will be closing down it Richmond, Virginia factory.

This move will also put about 1,500 people out of work at a time when there are few jobs to be found in the US. Qimonda does not have much choice though as they have been refused aid from the EU.

Right now Qimonda is looking for investors to help keep themselves afloat. If they are unable to find help Qimonda, which is has already filed for bankruptcy will end up being liquidated.

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Qimonda to close US plant

A Qimonda statement added that production at other sites, notably in the eastern German city of Dresden, would continue "for the time being."

But the group, which declared bankruptcy on January 23, also warned that "if investors cannot be found to finance the continuation of Qimonda's businesses, Qimonda would likely be liquidated."

Earlier on Tuesday, European Union industry commissioner Guenter Verheugen was quoted by the German newspaper Saechsische Zeitung as saying that the EU would not extend aid to Qimonda, which has been losing money for some time.

"No one can save a company that its owner no longer wants to save," Verheugen said.

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