As I outlined to the House in the Adjournment Debate last night, Keytronic, Dundalk, last week announced their intention to lay off a further five employees. The company, in conjunction with staff and the union, successfully implemented an agreed major restructuring of its business in 1996. This agreement included the transfer of part of the manufacturing operation to a sister company in Mexico and the retention of 75 employees in a significantly downsized operation in Dundalk. Since then market factors, in particular pricing pressures, have continued to impact adversely on the Dundalk operation and as a direct result the company is now faced with further lay-offs. In addition, the company has indicated that unless orders significantly increase in the next two months, they will be forced to reduce employment from 86 to 53 by the end of April.
IDA Ireland is monitoring the situation very closely and maintaining close contact with the company in the matter.
On foot of the significant lay-offs at Keytronic in 1996, I requested the industrial development agencies to embark on a vigorous campaign to bring alternative jobs to the north east. In late 1996, two large new projects were announced. DSC Communications intends to create 475 jobs at Drogheda over the next four years. Engineered Plastic Components, Dundalk, expects to employ 300 persons by the year 2000.
IDA Ireland is actively responding to the challenge of attracting new inward investment to the north east region through the acquisition of land for development. An advance factory is currently under construction in Dundalk. This factory is being promoted by IDA Ireland. A new industrial site for an advance factory is being acquired in Cavan and a developer will be sought to provide an advance factory in Monaghan as soon as a project has been secured for the Cavan factory.
