Business: Iomega closing Utah

SALT LAKE CITY (June 13, 2001 04:02 p.m. EDT) - Iomega Corp. is closing its manufacturing plant in Roy and laying off about 110 employees there to cut costs.

In a news release Wednesday, the maker of Zip storage drives said it will move all production to its plant in Penang, Malaysia. The company already does most of its manufacturing in Malaysia.

The company will still do product development and testing in Roy, Iomega spokesman Chris Romoser said.

The move and layoffs are effective immediately. Most of the people laid off in Roy are production workers, Romoser said.

Iomega manufactures computer data storage drives and software including Zip and Jaz drives and compact disc writers.

Analysts say Iomega has stumbled in the last four years because of problems with marketing and leadership turmoil.

On May 21, Iomega announced the resignation of President and Chief Executive Bruce Albertson due to differences over the company's long-term strategy.

In midday trading Wednesday, Iomega was trading at $2.52, down 1 cent, on the New York Stock Exchange.

Personal Note: Why should anything be manufactured here when it can be done overseas for $.25 an hour? That more than pays for the cost of shipping the finished product back here. Lets see $.25 an hour versus $10.00 an hour. That's a tough one. My whole point is: we have four industries that endures above all else. Get into medical, legal, energy or government. Least of all manufacturing and farming.

-- Guy Daley (guydaley1@netzero.net), June 13, 2001

Answers

"Why should anything be manufactured here.." I agree, and with NAFTA there are no import charges; plus the borders are open to commerce for free! These company's only answer to a International Court. I think it is called "being sold down the proverbial tube" for us Americans, by our Gov't.

-- Judy/W (judywhalen@aol.com), June 14, 2001.