More than 200 jobs are to go at a manufacturing plant in Tralee, Co Kerry.
Workers at BorgWarner are being briefed by management at meetings this afternoon that manufacturing will cease there by the end of the year and the plant will be shut down by the end of March next year.
The company employees 210 people and has been in Tralee for more than 30 years.
In a statement, the company said: "The primary driver of this decision is declining customer demand for the air heaters produced in Tralee, which no longer supports the need for a standalone manufacturing facility.
"The proposed closure is part of a series of market-driven adjustments by BorgWarner to adapt its cost structure in order to remain competitive in the current environment."
Managing Director Anton Diaz said: "Today is a difficult day for everyone at BorgWarner Tralee.
"This facility has been part of this community for over 30 years and the leadership team is very grateful to all BorgWarner Tralee employees for their dedication and contribution."
Workers at #BorgWarner in #Tralee have been decribing their shock at the news that the manufacturing plant is to close with the loss of all 210 jobs. They were called to meetings at lunchtime. They said the news is a bombshell. @rtenews pic.twitter.com/i8SYttMkbW
— Paschal Sheehy (@PaschalSheehy) July 28, 2020
The statement added: "The company sincerely regrets this development and, in the event of redundancies, will endeavour to provide a financial package and supports to the 210 impacted employees which recognises their service and commitment to BorgWarner Tralee.
"The company is very aware of the local impact this decision has on Tralee and will actively engage with employees and local community representatives to support however possible."
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In a statement, the Tánaiste and Minister for Enterprise Leo Varadkar described BorgWarner's announcement as a devastating day for the employees and their families.
"The company has been a significant source of employment in Tralee for three decades and this announcement will come as a major blow to the area," he said.
Mr Varadkar said he held a conference call with representatives from the company and the IDA this evening to express his concern at the decision.
"The company informed us that demand for their product was in decline and this was not related to Covid 19. They agreed to offer an enhanced redundancy package to staff and would speak to their employees and their representatives about this. They agreed to work with the IDA to find an alternative investor for the plant," Mr Varadkar said.
He said the IDA did everything it could to sustain the firm's presence here over recent years.
"The Government and the Agency were not, unfortunately, informed in advance that the company was considering closing its facility in Tralee," Mr Varadkar said.
SIPTU said its members at the BorgWarner plant were shocked and concerned by today's development.
SIPTU Organiser, Joe Kelly said: "We have scheduled a meeting with management as a matter of urgency for Thursday, 30 July, to discuss in detail the reason for this decision which has caused shock and concern among workers and the wider community in Tralee."
Mr Kelly said the union wanted to "explore if there is a possibility of maintaining any level of production in Tralee".
He said if this could not be achieved, "we will do all in our power to ensure the best terms and conditions for our members affected by the closure".
Kerry Sinn Féin TD Pa Daly said the closure of the plant was "a massive disappointment".
He said every effort must now be made to support the workers and their families and to "ensure they receive a fair redundancy package, as well as retraining for future employment opportunities".
Gerard Treanor has been a tool maker at BorgWarner in Tralee for the past 31 years. He said workers at the plant had no iota or hint of the bad news that was broken to the workers this afternoon.
"There was a numbness and people were stunned," Gerard told RTÉ News.
"The room was just in complete silence. You couldn't describe the atmosphere. People were so down."
He said workers only became suspicious when they saw a security guard at the gate at 12.50pm this afternoon.
"The alarm bells started ringing. We realised something wasn't right," he said.
"Two hundred and ten people - the impact will be devastating on the town of Tralee and on the young families who have mortgages and children. It's going to be very bad for the local area," added Mr Treanor.
