MALTA — Plans for a second GlobalFoundries factory are moving forward despite the company’s announcement last week that it would be cutting jobs and implementing a hiring freeze, according to Malta Town Supervisor Mark Hammond.
“They said it would not affect — and they reiterated — it would not affect their plans to keep moving forward with [Fab] 8.2,” said Hammond, who indicated he talked to the company last week following its announcement. “So that is very good news for Malta and the surrounding area.”
While it had record third-quarter financials and a good outlook for the fourth quarter, given the economic climate the company wanted to take “a very disciplined, proactive approach to contain costs,” stated Michael Mullaney, a spokesperson from the company.
News of plans continuing on the second factory also comes after the county approved a resolution related to the project. During the Saratoga County Board of Supervisors meeting Tuesday the board approved a resolution that allows GlobalFoundries to maintain the roads in Luther Forest Technology Park, where its current headquarters are located and the proposed site of Fab 8.2, said Christine Rush, the director of public relations for the county.
She also confirmed that county leadership’s understanding was that plans for the second factory, estimated to cost several billion dollars to build, were still on track.
GlobalFoundries is purchasing 800 acres of land in Luther Forest Technology Park for the expansion, according to an Albany Business Review article in July.
In July the town of Malta approved the 633,000-square-foot expansion just days after the town Stillwater approved a smaller portion of the project that lies in its town. JE Dunn, a Kansas City, Missouri, general contracting company that has a local base in Malta and has worked with GlobalFoundries in the past, was hired to work on the project, according to the article.
The original chip factory, called Fab 8.0, employs roughly 3,000 people and is currently undergoing a $1 billion-plus expansion of its production capacity.
The new factory would employ around 1,000 people, according to the Albany Business Review.
Hammond said that during his conversation with company officials he also discussed whether there would be any local jobs cut. Hammond said he was not able to find out how many jobs in Malta may be lost but given the tone of the conversation with company officials believes it may be minimal.
“I was informed they didn’t have those numbers yet,” he said. “They’re going to try and keep it obviously as minimal as possible. I got a sense it wasn’t going to affect Malta as greatly as it may in other areas such as Dresden [Germany] and where their other plants are. Maybe I just read that wrong, but I think that it may be that we’re going to be fairly safe in terms of numbers.”
Hammond said he also expressed concerns to company officials about the possibility of mass exodus as people leave to go to other plants to continue working.
“I was told that likely would not be the case, there may be a few folks of course that may have to relocate, but overall it sounded like it was going to be very minimal in terms of the impact,” he said. “I’m very hopeful that it stays that way, that it doesn’t change.”
He said he was not aware of how many people in the town work at the plant.
Company officials did not return a request for comment on possible layoffs.