Dáil Éireann Debate, Tuesday - 19 May 2009
102 Deputy Pat Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the announcement of the loss of 330 jobs at a plant (details supplied) in County Kerry; the discussions she has had with the industrial development agencies with a view to securing replacement jobs; and if she will make a statement on the matter. [19819/09]
View answerOn Friday 24th April, Amann announced that its plant in Tralee is to close with the loss of 215 jobs. I am keenly aware of the impact on the employees of Amann and their families in the light of this announcement. In many cases, such company announcements are as a result of global conditions and/or global decisions, over which we have less influence.
The closure announcement by the company follows the announcement in January 2009 of the loss of 120 jobs in the dyeing operations with their transfer to a new production plant in Romania. These job losses are underway with 50 jobs lost and the remainder to go by September this year.
The remaining labour intensive spinning and twisting operations are to cease in June and will transfer to the company's China facility over the period September 2009 to September 2010.
I am advised that this decision is part of an overall restructuring and consolidation of the Amann operations to reduce manufacturing costs in light of the significant decline in its business due to the weakening global economy and dramatic downturn in the automotive industry. The textile industry is extremely competitive and cost sensitive. The decline in sales is having a significant impact on its business, which relies on high volume and economies of scale to ensure its viability.
Amann will no longer spin in-house and will replace this with material sourced from suppliers at low cost. The labour intensive, low value added operations of twisting and spinning can no longer be sustained in Tralee and significant cost savings are envisaged in the transfer of these operations to its facilities in lower cost countries.
IDA has worked closely with the company to assess opportunities to sustain the plant which was highly regarded as a productive and efficient plant within the Group and met with both local and German management. However given the cost pressures and weak demand, the company felt that it had no option but to restructure its operations to sustain the Amann group.
The role of FÁS, the Industrial Training agency, is particularly important in assisting those who lose their jobs. Following the internal company consultation process, which has just commenced, FÁS have met with Amann management and staff representatives, and have formulated a plan of action to deliver the full range of FÁS services to all staff being made redundant in 2009/2010. These services will include;
On-site presentations to all staff
Advice on setting up a resource centre, in house, i.e. to facilitate staff in career guidance needs and job search activities.
Provision of a range of pre-redundancy and where necessary post-redundancy training courses to assist all staff in achieving relevant skills updating, which, in turn will enable them to competitively compete in the labour market.
The State development agencies, including IDA, Enterprise Ireland, Shannon Development and the county Enterprise Board will continue to work, where appropriate in liaison with the local Institute of Technology, to support existing jobs and to endeavour to secure new jobs in the Tralee area.
