I led a delegation of over 20 Irish companies to the US from 21 June to 26 June. The companies involved were mainly electronics and software companies but they also included sub-supply companies to the multinational high technology sector. The purpose of this initiative was twofold. First, it was designed to foster business partnerships between US and Irish companies in the broad electronics and software sectors. Second, it was geared to introducing sub-supply companies to the procurement procedures and executives of leading US multinationals.
The business partnership mission focused mainly on the Boston and Silicon Valley areas. It was organised by Forbairt and the US Small Business Administration under the US Ireland Business Partnership Programme. Three new business partnership agreements were concluded during the course of the week. There is considerable potential for further agreements arising from the week's endeavours. On behalf of the Government, I want to put on record my appreciation of the assistance of the US Small Business Administration and the support during the visit of Senator Edward Kennedy and the city of San Jose.
There is also considerable further potential in exploiting linkages with top US multinationals, many of whom are based in Ireland. During last week, together with executives from six sub-supply companies, I met representatives of Dell, 3 Com and Hewlett Packard. I hope these endeavours will also bear fruit.
As regards Motorola, I met senior management in Motorola on Tuesday, 23 June in Chicago. I strongly represented the case for the Motorola operations in Dublin and Cork and hope that these representations will assist in maximising employment in Ireland arising from Motorola's global restructuring plans. I was assured that both the company's Dublin and Cork operations have a strong future. Motorola will also consider Ireland as a location for further investment projects.
I met Mr. William Farley, chairman and chief executive officer of Fruit of the Loom, on 23 June in Chicago to discuss the US company's plans for its Irish operations. This was my fourth meeting with him since taking office last year.
Additional Information
The clothing and textiles industries world-wide are experiencing severe competitive pressures. Change is constant and in that environment there are no guarantees; that is the reality of the business world. The clothing industry in western Europe has been declining in the face of competition from low cost countries. This, coupled with liberalising world trade, has resulted in clothing companies in Europe and the US seeking cheaper sources of production. For example, Fruit of the Loom has been engaged in the retrenchment of its US-based operations for some time. Mr. Farley indicated to me that he is keeping the business in Donegal under constant review in the light of market forces. He stated that he will be visiting Donegal shortly as part of this review process. He will keep in touch with IDA Ireland and myself as the review progresses.
As regards Apple, I understand that the company began a review of its Cork operation last March, following the appointment of Mr. Tim Cook as the new senior vice-president of world-wide operations. This was followed by indications that Apple planned to relocate its circuit board, PCBA, manufacturing to a location with cheaper labour costs in the Far East, a move that could result in job losses in Cork.
On Friday last, 26 June, with the chief executive of IDA Ireland, I met senior management, including Mr. Tim Cook and Mr. Fred Anderson, chief financial officer, from Apple Computer in San Jose to discuss the company's Cork operations. At the meeting I emphasised the importance of Apple Cork and expressed the hope that employment at the plant would be maximised, with consideration given to locating new activities there. In the circumstances, my meeting with Apple senior management was positive. I am pleased with assurances given to me that Apple Cork will continue to be a core strategic part of Apple Computer.
While a decision regarding the future role of the Cork printed circuit board facility has not yet been finalised, a decision by the company is imminent. In this regard, I have secured a commitment that Apple will engage in direct discussion with its workforce and their representatives and that Mr. Cook will visit Cork, probably as early as this week. Meanwhile, senior officials from my Department are briefing Apple union representatives on my US meeting.