Electronics company Chunghwa Picture Tubes has confirmed that it plans to axe 600 jobs in Scotland next year.

Managers at the Taiwanese-owned company's plant at the Eurocentral industrial complex at Mossend, North Lanarkshire, blamed the move on a downturn in the global economic market.

A spokesman for the company confirmed earlier warnings from shop stewards that the cuts were about to happen.

He said: "It is with great regret that information was circulated from other sources to the media and others today before the company had an opportunity to convey it to our staff members.

Chunghwa makes tubes for TVs and computers

"However, we can confirm that despite investing around �205m in the plant over the last six years, CPT cannot continue to operate in its present form under the current global economic conditions."

The company said between 40 and 50 of the 639-strong workforce would be retained and it would enter into discussions about redundancies on Monday.

The spokesman added: "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."

Scotland's Enterprise Minister, Iain Gray, expressed disappointment at the move.

He promised assistance for the workforce and said the issue of financial incentives offered to Chunghwa over the years would be looked at, with a view to recouping some of the cash paid out.

Assistance payments

Mr Gray said: "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."

Bernie Hamilton: Condemned government policy

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.

"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."

The plant was built to manufacture cathode ray tubes for computer monitors and televisions and was hailed as the most technically advanced factory of its kind in the world.

Chunghwa was a flagship inward investment project and, in the days of government grants, cash incentives wooed the Taiwanese firm to Scotland.

The company promised more than 3,000 jobs but at its peak the plant employed 1,200.