Lexmark, the printer maker, is ending production of inkjet cartridges in Rosyth, Scotland and is transferring manufacture to a cheaper, unnamed country. Up to 1,000 jobs could be affected.

Lexmark's Scottish play is part of a sweeping re-org announced today which sees 825 job losses and 525 jobs relocated, and its US pension plan frozen. The restructure will cost $130m pre-tax and yield annual savings of $80m, the firm estimates.

The moves come in response to a weak Q4, with net income for the quarter dropping 47 per cent year on year to $82.3m on sales down 11 per cent to $1.37bn.

In 2002, The Scottish Executive doled out £900,000 in "regional selective assistance" to Lexmark Scotland, supposedly safeguarding 200 jobs.

The jobs blow is the latest in a string of factory closures and redundancies to hit Scotland's Silicon Glen in January. Earlier this month, Sanmina-SCI, owner of a computer plant in Greenock which it had bought from IBM, announced the closure of the factory with the loss of 300 jobs. Also this month, Inventec announced its intention to end server production in the country, with 370 jobs axed. ®

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Lexmark statement