There are fears for the future of more than 400 jobs at a car components factory in County Westmeath. Workers at the Iralco plant in Collinstown have been been told today that the factory is to close.
The ATGWU-Unite union, which represents more than 340 workers in Iralco, says the company has told it a liquidator has now been appointed. The union says it will be holding an emergency meeting with the liquidator on Wednesday to examine ways the jobs might be saved, but it says that the indications at this stage are bleak.
Iralco said it had been struggling for some time to overcome increasing costs associated with manufacturing in Ireland.
Iralco is one of the midlands' longest established companies. In German ownership, it has been based at Collinstown since 1964.
It manufactures car components such as doors and trims for Volvo, Bentley, Ford and Volkswagen. At the height of its production, the firm employed almost 900 workers - mostly from the local area - but in recent years that employment figure has fallen back to under 500 and there have been moves to introduce a cost-cutting programme.
A cost-cutting plan was rejected by the workforce in a vote in the last ten weeks. This afternoon the staff were told that the firm is to go into liquidation. They were sent home. It is hoped to sell Iralco as a going concern but doubts now exist over the future of the jobs.
Meanwhile, 24 full-time workers at Smurfit Kappa in Waterford are to lose their jobs when the company ceases production on May 8 this year. Smurfit Kappa, which is part of the Smurfit Kappa Group, is a packaging company which has been operating in Waterford since 1998.
Management says the company has been affected by a reduction in the demand for packaging in the local market. It is understood Smurfit Kappa will retain some sales and support staff in the region.
