News | Wednesday, 16 September 2009

ST Microlectronics future still in the balance

Karl Stagno-Navarra

ST Microelectronics have not yet concluded talks with government about an assistance package, but prospects are that the multinational will keep its operation in Malta, but downsize it’s labour force.
Finance minister Tonio Fenech yesterday reiterated government’s invitation to ST Microelectronics to “continue talks” but kept a firm position as to how far the state could go in accepting the company’s demands.
“It takes two to tango and I will not create a shipyard out of ST. I will not close a deal just to close a deal,” Tonio Fenech told a business breakfast yesterday when asked about the state of negotiations with the company.
According to the Finance minister, the prospects were that ST would retain its operations in Malta, but he disputed claims that the company accounted for 15% of Gross Domestic Product.
He explained that ST Microelectronics was a significant contributor to exports and imports “but its main contribution to the country was its payroll and the spill-over to other companies that served it.”
ST Microelectronics does not pay any tax in Malta.

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