Dara Calleary (Mayo, Fianna Fail)

I thank Deputies McEllistrim and Deenihan, and all Deputies and Senators, for their good wishes. I also thank the Deputies for raising this matter on the Adjournment.

On Friday 24 April, Amann announced that its plant in Tralee was to close with the loss of 215 jobs. The Tánaiste and the Department are keenly aware of the impact on the employees of Amann and their families. In many cases, such company announcements are a result of global conditions or decisions over which we have little influence. The closure announcement follows the announcement in January of the loss of 120 jobs in the dyeing operations due to their transfer to a new production plant in Romania. These job losses are under way, 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 facility in China over the period September 2009 to September 2010.

I am advised 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 the dramatic downturn in the automotive industry. The textile industry is extremely competitive and cost-sensitive, and 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.

The 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 its representatives have met both local and German management. However, given the cost pressures and weak demand, the company felt 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, representatives of 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 and 2010. These services will include on-site presentations to all staff; advice on setting up a resource centre in-house to facilitate staff in career guidance and job search activities; and the provision of a range of pre-redundancy and, where necessary, post-redundancy training courses to assist all staff in skills updating, which will enable them to compete in the labour market.

The State development agencies, including the IDA, Enterprise Ireland, Shannon Development and the Kerry County Enterprise Board, will continue to work to support existing jobs and secure new jobs in the Tralee area, liaising where appropriate with the local institute of technology.

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