Applied Materials is closing its manufacturing facility in Libby, company officials said Wednesday.
Kevin Winston, head of corporate communications for the global technology giant, said all 17 employees in Libby are being offered similar positions at the Kalispell location with relocation assistance.
“It was not an easy decision, but ultimately we feel that combining the staff in one location is best for employees and the company,” Winston said.
“We are hopeful that our talented Libby personnel will consider transferring to Kalispell. Applied will be offering severance benefits to each affected employee should they choose not to transfer.”
The Libby facility, a manufacturing site, has been open for nearly 15 years. The closure takes effect Oct. 1.
Applied Materials Inc., a California-based global supplier of chipmaking equipment for smartphones and other cutting-edge computer technology, has facilities across the world, including Northwest Montana. The Kalispell site, formerly Semitool, plays a key role in the Applied Materials supply chain, developing components used to create semiconductor and display technology that are then used by other companies to make the world’s most popular electronics, including smartphones.
In April, the manufacturing giant announced it was scrapping plans to merge with Tokyo Electron of Japan, another global chipmaker, after the Department of Justice said that combining the two companies would hamper competition in the industry.
The deal, valued at $9.39 billion and announced in 2013, would have created a new tech giant worth $29 billion that would have controlled more than a quarter of the market in the rapidly evolving digital sector. American antitrust officials had expressed opposition to the merger. The two companies sought to streamline research and enhance manufacturing capabilities by combining two of the three largest players in the market.
In the wake of the breakdown, Applied Materials has continued to thrive as the market for electronic devices continues to boom.
Earlier this week, the company announced its third-quarter earnings were up compared to a year ago. Orders were valued at $2.89 billion, a 17 percent increase year over year. Net sales were valued at $2.49 billion, a 10 percent increase over last year.