Compaq Computer will close the Digital Equipment assembly center at Lane Cove in Australia and consolidate its operations into the Compaq configuration center at Rydalmere, the company has announced.
The process is expected to take between three and six months, and is not expected to affect product delivery, according to company officials.
This news forms part of a global announcement of Compaq's plans to consolidate manufacturing worldwide, as it continues integration of its acquired companies, Digital and Tandem.
"Integrating all Compaq manufacturing operations into a single, cohesive organisation is essential as we build the future Compaq. This represents a major synergy of the Digital/Tandem acquisitions" said Eckhard Pfeiffer, president and CEO of Compaq recently.
Ian Penman, managing director, Compaq Australia, said earlier this week that Compaq's merger with Digital will result in 300 to 400 redundancies in Australia.
Penman said some of the redundancies will come from the PC area, some from combining the two manufacturing operations, and some will be from headquarters operations.