Waterford Wedgwood has confirmed that it plans to close the Waterford Crystal plant in Dungarvan with the loss of 395 jobs. A further 95 will be lost at the plant in Kilbarry in Waterford.
The move is part of a €90m restructuring programme announced this morning which will see 1,800 jobs go across the group by the end of 2006.
In a trading update in March, the company had signalled that it was reviewing its costs in a bid to return to profit. It has been hit by weak sales and the weak US dollar.
Waterford will cut 160 jobs at its Rosenthal subsidiary in Germany and 200 across the wider group. It has also identified savings to be made following its acquisition of Britain's Royal Doulton in January. Around 950 jobs in both companies will go as a result of these measures - Waterford says around 450 have already left.
The company is funding the cost of the changes through a €100m rights issue at a price of six cent. Main shareholders Dr Tony O'Reilly and Peter Goulandris, who hold almost 25% of the company, will be taking up their full entitlements.
'While I very much regret the job losses, these changes are vital to ensure the long term prosperity of this historic company and its key heritage plants in Ireland, England and Germany as we face increasing competition from low cost economies in Asia and elsewhere,' said chairman Dr O'Reilly.
'It is particularly sad to announce the closure of our Dungarvan plant which has been in operation for over 30 years. However, I know that this difficult decision is necessary to ensure the prosperity of the Group and the future of crystal manufacture in Waterford,' said chief executive Redmond O'Donoghue.
* The Minister for Enterprise, Trade and Employment, Micheal Martin, said the Government would try to find new investors for Waterford and Dungarvan.
He said that the IDA would be looking to attract additional investment into the Waterford region. He added that FAS and local colleges would also work to reskill workers from Waterford Crystal.
Shares in Waterford Wedgwood closed almost 37% higher at 5.2 cent in Dublin this evening.
