AST Computer, which employs 450 people at its Limerick plant, is to announce this week plans to reduce employment. Talks on a major rationalisation of the plant have been taking place over the weekend and these will continue this week. A spokesman for the IDA told The Irish Times: "We are continuing in close discussion with the company and those discussions will continue right through Christmas period and into the New Year". While industry sources say the intention is to "downsize" the plant, there is a fear that, following the Seagate shock announcement of 1,400 job losses at Clonmel, AST's Limerick plant might close. The sources note that the two plants are different; Seagate produces hard drives for computers while AST puts the computers together. Also, AST is owned by Korean group Samsung, which can be expected to make less hasty decisions than that taken by US-owned Seagate, the sources say. AST last month warned of the need to cut back on its worldwide operations. Around one-third, or about 1,100 jobs, are to go. Also, its plant at Fort Worth, Texas, is to be reduced in size. AST established its personal computer plant in Limerick in 1994. This is its only manufacturing plant in Europe.

AST has been losing heavily due the intense competition in the personal computer market. Reflecting this, the group was in the red for the last 12 quarter results. Employee numbers at the Limerick plant have already been reduced from a high of around 750 - some were employed on a temporary basis. That high number, in 1995, represented a doubling of its original employment forecast of 350. At the time it was felt that further jobs could be generated and that AST would bring more business to its Irish sub-contractors. Employment levels are now down to core of 450. Mr Sean Corkery, a native of Cork, had been in charge of the Limerick plant but recently joined Esat Telecom. Samsung, which had previously been a major shareholder, purchased the company last August. At the time it was feared that production at the Limerick plant might be amalgamated with Samsung's British plant. However, the Korean group subsequently said it needed to streamline its European operations.