I thank the Deputy for raising this matter on the adjournment. As Minister of State, I will convey the views of the Deputy to the Tánaiste and I regret she could not be here in person. I share responsibility and will be glad to answer the matter raised. The Tánaiste and I share fully the Deputy's concern and disappointment over the recent decision by IEC Electronics to discontinue operations in Longford. I am conscious of the effect which this will have on Longford and most immediately on the employees concerned.
IEC Electronics Corporation is a US publicly quoted company engaged in the provision of an electronic contract manufacturing service to companies in the electronics industry. It employs over 2,000 worldwide. IEC purchased the Longford plant from Oshima in 1998. The decision to invest in Longford was on the basis of start-up business from Pioneer UK and supplementary business from new customers being developed by IEC. Shortly after the sale, Pioneer decreased its business with IEC. In addition, the development of a viable contract manufacturing business base required far more time than was originally anticipated. IEC continued to aggressively seek new business with the assistance of IDA Ireland. However, IEC has been unable to convert the business to profitability during the past year and continued losses projected for the coming fiscal year led the company to the closure announcement on 1 October 1999.
IDA Ireland has made contact with senior IEC management in the US and Ireland. IEC has indicated that its preference is to dispose of the plant as a going concern and I am hopeful that it will be successful in its efforts. IDA Ireland will work closely with it in its efforts to secure a potential buyer. However, if this proves to be unsuccessful, the plant will close at the end of 1999. Accordingly, a profile of the Longford facility is being prepared which will be circulated by IDA Ireland to its network of overseas offices to assist in securing a replacement project for the facility.
This news is a further blow to the community following so closely on the closure earlier this year of Atlantic Mills. In December 1998, in response to the announcement by Atlantic Mills of its intention to close, the Tánaiste set up an inter-agency task force comprising representatives of IDA Ireland, FÁS, Enterprise Ireland, the county enterprise board, Longford County Council, Longford Community Resources and Atlantic Mills. At the request of the Tánaiste, the task force met yesterday to determine a response to the proposed closure of IEC. At that meeting, the company's commitment to co-operate fully with the task force was welcomed. FÁS agreed a programme which will initially identify the skills profile of the workers and in the event that the plant does close, will initiate retraining for suitable job opportunities. IDA Ireland will continue to seek a direct replacement for the plant and will be targeting specific industry areas, that is, sub-supply to the IT industry and the hardware testing industry.
The State agencies are very active in the Longford region. Longford is a priority town for IDA Ireland and continues to be aggressively promoted for inward investment. Efforts are continuing to find a replacement for the Atlantic Mills facility. FÁS is continuing its work programme with the former workforce. Confidence building programmes are complete and training aspir ations are being met. Tracking and follow-up are ongoing. IDA Ireland continues to aggressively promote the advance factory in Longford town. Over the past 12 months, a total of 26 companies have visited the factory. Unfortunately, none of the visiting companies have ultimately opted to locate in the Longford factory, despite the very generous grant package and a special low rent and purchase package on offer.
Employment in Enterprise Ireland aided companies in the county has increased steadily over the last four years from 1,279 in 1995 to 1,734 in 1998. As the Deputy is aware, in June 1998 the Tánaiste officially opened the Key Tech precision engineering facility in Longford which will result in 40 jobs in the manufacture of precision metal components for Irish and overseas industry. In November 1998, she announced the establishment of Longview Technologies Limited, a start-up company which will employ 37 people in the provision of programming and IT consultancy services to the financial services sectors in Ireland, UK and the US. Based in Longford, the project provides opportunities for skilled IT personnel. Enterprise Ireland is at an advanced stage in negotiations with a number of companies in the region and is confident of a positive outcome for the creation of a number of jobs. Given the ongoing efforts of the State agencies, we are confident that the work of the inter agency task force will prove successful.
