Unilever best foods Ireland informed its staff this afternoon of its decision to close the Rathfarnam ice-cream plant in mid-2003.
This will mean a reduction of 180 jobs in Unilever's current workforce of 800.
A spokesperson said this was an unavoidable business decision. She said the Rathfarnam plant was too big to be sustained by Irish market, but not big enough to be competitive in the European market.
The decision follows a strategic review of sourcing and cost levels across Unilever's European ice cream business where changing consumer tastes, technological advancement and greater product harmonisation have created significant manufacturing overcapacity.
It is necessary to bring capacity into line with demand and achieve optimal cost effectiveness.
The decision will have no impact on teh range of HB ice-cream sold in the local market and the company intends to explore appropriate options which will enable it to continue manufacture of selected products in Ireland through a joint venture arrangement. The closure of the factory will not affect the company's existing van sales operation. (selling to corner shops, symbol groups, supermarkets).
A spokesperson said this was an unavoidable business decision. She said the Rathfarnam plant was too big to be sustained by Irish market, but not big enough to be competitive in the Euroepan market.
