A Scottish minister has promised to "claw back" funding given to a Taiwanese company which has announced plans to cut 600 jobs.

Chunghwa Picture Tubes (CPT) said the vast majority of the workforce at its plant at Mossend, in North Lanarkshire, will be made redundant.

The company came to Scotland promising to create more than 3,000 jobs but at its peak the plant, which makes cathode tubes for computer monitors and televisions, employed 1,200.

Now only about 40 or 50 of its 639-strong workforce will be retained at the huge site.

Iain Gray: "Extremely disappointed"

Scottish Enterprise Minister Iain Gray said his first concern was the workforce but added: "I am extremely disappointed that despite substantial subsidies from the public purse made over many years, CPT have announced these jobs losses.

"However, the issue of the financial assistance cannot be overlooked.

"As well as being exempt from rate payments for the past eight years, the company has received some �15m in Regional Selective Assistance payments.

"In light of today's announcement I have instructed my officials to pursue clawing back some of that money."

Chunghwa said it had invested more than �205m in the plant over six years and blamed the downturn in the global economic market.

A spokesman said: "We have been operating in an extremely tough business environment in recent years - none more so than in the last few months.

'Financial difficulty'

"The strength of the pound, coupled with the downturn in the global market and the economic aftermath of September 11, have led to CPT's reluctant proposal to reduce staff numbers from 639 to between 40 and 50 on February 4, 2003.

"The company is committed to ensuring staff members are equipped with all the resources and support they need to secure other jobs or retraining."

Bernie Hamilton, regional officer with the Amicus-AEEU union, said: "The company has been in financial difficulty for some time now, but this announcement is completely unexpected.

Bernie Hamilton: Anger at investment policy

"Initial discussions have taken place with the company and we are seeking further talks as a matter of urgency.

"This is another product of the flawed inward investment policy of the late 80s and early 90s impacting on the hard-working people of Scotland."

Scottish National Party economy spokesman Andrew Wilson said questions must be asked about the financial tactics used to entice multinational companies.

He said: "It is now clear that a phenomenal amount of taxpayers' money has been badly squandered.

"And serious questions must be asked about the competence of government ministers who agreed to deals that lined the pockets of multinationals without protecting the long-term interests of the Scottish taxpayer, workers and the economy."

Compaq merger

The announcement was a further blow for Scotland's once-buoyant electronics sector, known as Silicon Glen.

About 600 workers at Inventec's plants in Hillington, Glasgow and Inchinnan, Renfrewshire, lost their jobs in July.

Hewlett-Packard cut 650 jobs at its plant in Erskine, Renfrewshire, following the merger with Compaq.

Mobile phone firm Motorola made more than 3,000 members of its workforce redundant when it closed its factory at Bathgate, West Lothian last year.