Elastic products manufacturer Fulflex is to cease manufacturing in Limerick next month with the loss of 108 jobs due to higher costs and lower prices for its products due to competition from cheaper economies.
The Moore Company, which owns Fulflex, said intense global competition means the company will make substantial losses in 2006 and that 108 jobs will be affected out of a total workforce of 124.
Customers will continue to be supplied from lower cost factories in other locations and Fulflex will continue to have a presence in Limerick with 16 people employed there.
The company cited a huge reduction in global elastic selling prices and an increase in costs - especially for raw materials. High manufacturing costs in Ireland - especially labour costs, and a strong euro compared to the US dollar were also given as reasons for Fulflex's decision to cease manufacturing.
The company said it will organise discussions with employees and employee representatives on severance package details.
Fulflex International was established in Limerick in 1969 and is the world's leading manufacturer in diaper leg elastic.
