Business

Hefty tax bill cuts into Seagate Technology profits

The Seagate factory in Derry provides work for more than 1,300 people
The Seagate factory in Derry provides work for more than 1,300 people The Seagate factory in Derry provides work for more than 1,300 people

DERRY-based Seagate Technology has posted profits of $18.706 million (£12m) before tax, broadly in line with 2013.

However, the tax bill for the company - which is registered in the Cayman Islands - meant profits down by a third following deductions at $12.623 million(£8.118m) for the 12 months to the end of June 2013, compared to £12.4m the previous year.

The manufacturer - which employs 1,300 people in Derry - provides data storage solutions for companies across the world including read-write heads for hard drisk drives.

In notes accompanying its annual accounts, the company said it "continued to invest in its manufacturing capability of 'thin film' recording head wafers, employing the very latest product and process technologies".

It said it "expected that the manufacturing capability will continue to be upgraded in the coming year to account for ongoing technology advances in the recording head industry".

Last October the firm announced a £35m research and development project which is set to create 35 new jobs at its Springtown facility.

It will involve the development heat-assisted magnetic recording technology and will provide work for 178 staff.

Seagate was offered £7.8m from Invest Northern Ireland to assist the project.

The project will collaborate with Ansin, an advanced materials research and development hub set up as a joint venture between Seagate and Queen's University, Belfast.

Revenue for 2014 was slightly down on the previous year to $236.3m (£152m) from $253.7m (£163.2m).

It invested more in research and development - $45.1m (£29m) compared to $41.9m (£27m) in 2013.

The Californian-headquartered company - which is incorporated in Dublin - first set up in Derry in 1992 making it one of the earlier foreign direct investment success stories for the north

At its height it employed well over 2,000 in Co Derry including at a plant in Limavady.

Currently, just over 1,300 people work at the Springtown facility. The Limavady factory closed in 2007.