Oregon Public Broadcasting

Hynix Semiconductor has announced it’s closing its Eugene computer chip plant. More than 1100 employees will be laid off in the next two months. KLCC’s Rachael McDonald reports.

The company’s CEO came to Oregon Wednesday and met with Gov. Ted Kulongoski and Eugene Mayor Kitty Piercy.

Piercy says losing one of the county’s largest employers is a big blow -- the plant paid $2.5 million in annual property taxes to the city.

Piercy: “It’s not only the money they pay in taxes in general which is huge here but it’s the money that circulates in the community from the jobs people have at the facility. So both of those things are going to have a huge impact on our community.”

Mayor Piercy says she will work with Governor Kulongoski to help people laid off. She says Hynix has expressed interest in partnerships with local companies to develop another kind of manufacturing plant.

The South Korean company closed its Eugene plant because they’re now using larger, more efficient micro-chips.