Tim O'Malley (Limerick East, Progressive Democrats)

I thank the Deputies for raising this matter. I am concerned that Tractech Ireland Limited has announced that it intends to close its Sligo operation by the end of 2006. I am conscious of the effect these job losses will have on the workers, their families and community. The company has commenced a staff consultation process and the outcome of this process will be a phased transfer of the operation outside of Ireland in 2006 with the loss of all 120 jobs in Sligo.

Tractech manufactures centrifugal clutches and traction enhancing differentials for heavy duty equipment and off-road vehicles and was established in Sligo in 1983. The company has been a steady employer of skilled fitters and engineers and has delivered consistent growth and profits. The Eaton Corporation acquired Tractech earlier this year and, while local management saw opportunities for growth arising from the new relationship, they were awaiting a clear statement from the new parent company on the strategy and direction the Sligo operation would take. Eaton considers that there is a need to consolidate operations, as there is not enough business to support the operation of multiple facilities that build similar product.

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