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Dáil Éireann díospóireacht -
Tuesday, 6 Feb 1996

Vol. 461 No. 1

Written Answers - Dundalk (Louth) Job Losses.

Dermot Ahern

Ceist:

230 Mr. D. Ahern asked the Minister for Enterprise and Employment the action he proposes to take in order to address the situation whereby 200 jobs have been lost in two companies in the Dundalk area of County Louth, Keytronics Dundalk and Harris Ireland, Dundalk; and if he will make a statement on the matter. [2340/96]

Over the past two months, a total of 175 jobs have been lost in the KeyTronic plant in Dundalk. These job losses have been as a direct result of severe cost pressure in the manufacture of keyboards.

KeyTronic anticipated heightened demand for its keyboard as a result of the launch of Microsoft's "Windows `95". They increased production, purchased extra equipment and employed an additional 200 people. Now, however, increased stocks and a lower than anticipated demand have led to excess manufacturing capacity, leaving KeyTronic with no alternative but to reduce capacity.

Ecco Limited (Harris Ireland) recently laid-off 40 temporary workers who were employed to cater for a seasonal demand in their product. Overall, Ecco has performed well in recent years with employment increasing from 265 permanent people in 1992 to 300 at present.

The north-east region has a significant base of high technology companies which is a key factor in attracting overseas investors. There is an impressive array of over 40 overseas companies in County Louth including Quantum, ABB, AFL/Stribel, National Penn and Riverside Manufacturing Company Ltd.

In addition, the announcement last November that American Power Corporation (APC) is to locate its uninterruptable power supplies project in Drogheda will result in £14 million investment and employ 300 people at full production.

As regards indigenous industry, Forbairt through its north-east regional office continues to actively promote the area for industrial development. For example, during my visit to Boston with Forbairt officers last November, I announced three specific business partnerships between Irish and US companies including one from County Louth. This was between Creative Media Training Services Ltd. in Drogheda and Paradign Inc, of Florida.
Forbairt is also working with Dundalk regional technical college in seeking to source potential technology based startup programmes. In addition, on the indigenous side, I would draw the Deputy's attention to the recent opening of Potato Cuisine Ltd. in Drogheda which will create over 60 jobs.
I can assure the Deputy that both IDA Ireland and Forbairt will continue to build on the developments in Dundalk, and County Louth in general, which I have outlined.
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