It has been confirmed that 220 staff are to lose their jobs at technology firm, SerCom Solutions in Clondalkin in Dublin. The company, which is owned by DCC, will close its loss making Dublin operation on April 29.
It is consolidating its operation at its Limerick plant, which employs 300 people, and it is hoped that some new jobs may eventually be created there. 32 jobs will be retained in a smaller Dublin facility to provide support services to the remaining group activities.
In a statement, the company said it had been hit by the trend among technology companies using its services to relocate to Eastern Europe and Asia.
There has also been a drop in the demand for print services which were a central element at the Clondalkin plant.
The company paid tribute to its workforce and said it hoped that after the restructuring the company would be more profitable and would try to broaden its customer base in new territories including Poland and the US.
Meanwhile, DCC also announced this morning that two of its divisions have made substantial acquisitions for a total of €19.3m.
DCC Energy has acquired 100% of UK fuel card business Dyneley Holdings, while DCC Healthcare has bought Laleham Healthcare, a UK based contract manufacturer. The two businesses generate annual operating profits of about €7m and have aggregate net operating assets of about €3m.
In this morning's statement, DCC also said that exceptional charges for the year to the end of March 2005 would amount to around €16m. These relate to a number of items including the closure of the Dublin SerCom Solutions plant, the integration of the Shell Direct Business in the UK, the ongoing pursuit of the Pihsiang award and the ongoing Fyffes legal action.
Dyneley Holdings, through its subsidiaries Fuel Network Ltd, Networld Card Ltd and Fuel Card Services Ltd, sells about 150 million litres of motor fuels a year via fuel cards under the BP, Esso and Texaco brands.
DCC said the company is complementary to its existing energy businesses as there is a significant opportunity to work in conjunction with the oil majors to market fuel cards to DCC Energy's large customer base in the UK.
Laleham Healthcare, 75% of which DCC Healthcare has purchased, is a contract manufacturer and packer of creams and other liquid products for the health and beauty market.
DCC said these activities complement DCC Nutraceuticals' current service offering to the European nutraceuticals (vitamin and health supplements) market which include tablet manufacturing, hard and soft gel encapsulation and packing.
DCC shares closed up 10 cent to €17.55 in Dublin.
