Struggling US telecom giant Motorola will close its mobile phone manufacturing plant in Singapore as part of the company’s 500-million US dollar global cost cutting exercise, it said Thursday.

Motorola said the move, which will affect 700 employees, is aimed at aligning the company’s operations to grow the business.

   “Motorola confirms that as part of its strategic review of business operations… the company will begin a phased transition of its mobile phone manufacturing operations from Singapore to other Motorola facilities worldwide,” company spokeswoman Lynn Chan said.

“This transition will enable Motorola to align the organisational structure with long-term plans to drive the business while continuing to provide its customers with high-quality products and services,” she said.

Motorola will start phasing out the mobile phone plant’s operations in the second quarter and expects the exercise to be completed by the end of the year.

The US company said Singapore will remain as regional headquarters for software development, research and development as well as for business and corporate functions.

Motorola announced last week it would split into two independent, publicly traded companies in an effort by the telecom and wireless firm to regain market leadership.

Motorola was once the world’s second-largest mobile phone maker after Nokia Corp of Finland. It has lost its place to South Korean rival Samsung Electronics Corp amid fierce global competition, and watched its earnings slide.

The launch of Apple’s iPhone and other smartphones has also put pressure on Motorola to revamp its product line.

The company lost 49 million dollars in 2007, swinging to a deficit after a profit of 3.6 billion dollars in 2006.