by Mike Buetow

KUALA LUMPUR, Jan 14 - Solectron Corp. will close one of its four factories here in May and pay a reported $1.6 million to the 750 displaced staff, a local newspaper reported today.

The Business Times reported Solectron said the Johor plant was no longer viable due to customers' changing needs. Most of the business will be transferred to other sites in the region," Joe Tang, south Asia operations vice president, was quoted as saying.

Solectron employs more than 7,000 workers at its four manufacturing plants here.

Analysts feel the nation's electronics manufacturers are migrating to lower cost regions, the Business Times said.