Sun is to transfer some production of its flagship enterprise server from the US to its plant at Linlithgow, Scotland.

The server giant is to build a £25.8m extension to its Scottish factory in order to manufacture its Sun Fire 15000 servers in Europe. Scottish workers will go to the US to get up to speed in Sun's latest software technology prior to the opening of the extension of the plant in October.

News of the expansion comes as a welcome boost to Scotland's hi-tech industry, which suffered a set back last week when HP (following the successful completion of its merger with Compaq) announced plans to axe 630 workers (including 450 full time staff) at its factory in Erskine.

Linlithgow, Sun's sole manufacturing factory outside the US, was first opened in 1990. The extension increases the overall size of the plant to 405,000 square ft housing nearly 1,000 employees and contractors, The Scotsman reports. ®

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