On 18 April, 2002, I announced that Churchill Insurance Group plc, UK was to create 600 new jobs in Galway over the next five years. This facility, a customer interaction centre, was necessary to support current and future growth of Churchill's insurance business in the UK market, which consists mainly of household and motor insurance. The company currently employs about 130 people in the Galway facility.
On 18 April 2002, I also announced that Thomson NETg, one of the world's leading providers of learning solutions to the corporate and academic markets, was to expand its e-learning product development and innovation centre operation in Limerick with the creation of 360 new jobs, bringing total employment at Thomson NETg in Ireland to 700 by the end of 2005. As part of the proposed expansion, the company agreed with IDA Ireland that up to 80 of the new jobs announced in April 2002 would be located in Birr, County Offaly. However, the company subsequently decided to postpone its expansion plans and indicated that it would not undertake the establishment of an operation in Birr due to the adverse economic climate, particularly in the e-learning sector.
On 19 November 2003, NETg announced that, as part of an ongoing assessment and reorganisation of its global business operations, a decision had been made to consolidate its global product development activity in Naperville, Illinois, USA. As a result of this decision, the company's product development facility in Limerick will cease operations with the loss of 173 jobs. The plant is expected to close in March 2004.
It is understood that the Limerick closure decision was only taken after considerable examination of the corporate structure and a review of options. The group is operating in an increasingly challenging IT environment which necessitated taking measures in order to align the cost base with revenue. The availability of the Limerick facility for a new project will be marketed strongly by IDA Ireland in co-operation with NETg. FÁS has already been in contact with the company and offered its range of training, job placement and other services to workers affected by the proposed closure.