Electronics firm to create 200 jobs
The increased demand for flat-screen televisions is to create an extra 200 jobs at a
south Wales factory.
Orion Electric is to add a new production line to its Margam plant near Port Talbot to keep up
with high street sales of the new generation of televisions.
The move will the see the workforce at the site - which also manufactures DVD players and
VCRs - increase from 330 to 530 by January.
Economic Development Minister Andrew Davies welcomed the decision which comes six
months after almost 900 jobs were lost at the LG Phillips Display factory in Newport.
Two hundred jobs coming to Neath Port Talbot is a marvellous
Christmas present
Council leader Noel Crowley
He said: "The decision is particularly good news for Wales at a time when the electronics
sector is seeing increasingly tough competition from overseas markets."
Orion usually takes on up to 200 part-time workers in the run-up to Christmas but increased
demand for its products means it is looking for permanent staff.
The firm, which came to Wales nearly 20 years ago, supplies the UK and European markets
with products that are branded for high street retailers.
But an increase in sales and demand for its own branded products, particularly for flat screen
televisions, has led to the increase in capacity.
Managing Director Mr Nakatani said: "We will be offering these positions from January 2004
so we need candidates to apply now so that the selection process can start this month and
continue during 2004."
'Christmas present'
Mike King, executive director of the Welsh Development Agency, said the announcement was
a boost for the manufacturing sector in Wales.
He said: "Orion's decision to expand its Welsh plant is also a vote of confidence in Wales.
"It is the result of the company moving up the value-added ladder and progressing to more
modern technology."
Neath Port Talbot council leader Noel Crowley said: "Two hundred jobs coming to Neath Port
Talbot is a marvellous Christmas present."
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/wales/3258048.stm
Published: 2003/12/03 06:58:23 GMT
© BBC MMIII
Description on the newspaper
Orion Electric is an electronics firm in England. As there is an increase
the technology level there is an increased demand for flat screen televisions.
The electronic firm creates extra 200 jobs, so as to produce more flat-screen
televisions.
On the other hand, Economic development Minister Andrew Davies
welcomed this decision which come six months after almost 900 jobs were
lost at the LG Phillips Display factory in Newport. These two hundred jobs
coming to Neath Port Talbot is really a marvellous Christmas present to those
who are unemployed.
Explanation
Fig. 1
Figure 1 :
As technology level increases, flat-screen televisions become more
and more popular. Due to this trend, people’s tastes change and have an
increased demand for flat-screen televisions. Therefore, the demand curve
shifts to the right ( D1 D2 ). It leads to an increase in both equilibrium price
( P1 P2 ) and equilibrium quantity( Q1Q2 ).
Fig. 2
Figure 2:
Since people’s demand for the flat-screen televisions is increasing and
the supply of this type of televisions is not enough to meet all the demand of
people, therefore, excess demand occurs. As to reduce the excess demand,
the Orion Electric Firm increases the supply of flat screen televisions. From
the diagram, the supply curve shifts to the right ( S1S2 ). Thus, reducing the
excess demand. ( excess demand 1  excess demand 2 ).
Fig. 3
Figure 3: ( From the point of view form firm )
Since the demand for the flat-screen televisions increases, this leads to
the demand for labour increases. So, there is a derived demand. According to
the diagram, the demand curve shifts to the right ( D1 D2 ). There is a
decrease in the market wage of the labour (Market Wage 1→ Market Wage 2),
but an increase in equilibrium quantity (Q1→Q2).
Fig.4
Figure 4:
According to the newspaper, “Economic development Minister Andrew
Davies welcomed this decision which come six months after almost 900 jobs
were lost at the LG Phillips Display factory in Newport” . That means there is
problem of unemployment. Thus, there is excess supply of labour as well. As
the demand for labour increase, the demand curve shifts to the right (D1→D2).
This reduces the excess supply of workers (excess supply 1→ excess supply
2). Thus, reduces the problem of unemployment.