Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I thank Deputy Coffey for raising this important issue. I would like to express my sympathy to those workers who are affected by Honeywell's decision. Obviously, I share the Deputy's concern about the loss of jobs at Honeywell. As the Deputy knows, this turbo-technology company notified IDA Ireland on 8 October that due to forecasted reductions in demand for its products, it intends to begin a voluntary redundancy programme to reduce its current workforce by up to 34 positions by the end of November.

Honeywell currently employs 375 people in Waterford. It has informed its employees of its plans to make these redundancies. It manufactures and supplies turbo-wheels to Honeywell turbo-charger assembly sites in Italy, the Czech Republic, Romania and Slovakia. These sites sell to automotive engine manufacturers globally. Honeywell's parent company, Honeywell International Inc., is a diversified technology and manufacturing company that serves customers worldwide with aerospace products and services, control sensing and security technologies, automotive products including turbo-chargers, specialty chemicals, electronic and advanced materials and process technology for refining petrochemicals.

Honeywell in Waterford has had to review its business structures to increase its competitiveness as the global automotive industry has become increasingly more competitive. Car demand is weak in Europe at present, with many automotive companies realigning production with current demand. The company will now enter a consultation process with the workforce in Waterford. It is expected that the redundancies will be voluntary, in line with previous reductions. We are seeing more and more companies engaging in this type of restructuring, where companies are looking strategically at opportunities in the global market and taking steps, such as making redundancies, to position themselves for future growth. The proposed redundancies in Waterford are part of the adjustments the company is making to meet the evolving needs of the business and to remain competitive in a challenging global environment.

Honeywell has two sites in Waterford involved in the parent companies activities, which I am glad to say will not be affected by the proposed redundancies. IDA Ireland will discuss the plans for the site with the company and will remain in regular contact with local management.

On Deputy Coffey's wider issue, I fully recognise that manufacturing has been neglected. It suffered through a loss of competitiveness, which resulted in a loss of markets, leading to a tough attrition on employment and manufacturing. Overall, there has been a massive decline in employment in the sector from about 300,000 to 200,000.

There are opportunities in the manufacturing sector, and I established a forum to look at those. Next year, we will introduce a national step change initiative to assist manufacturing companies, both Irish and non-Irish, to lift their capability and open up new markets. Improved competitiveness, changes in the markets and increasing personalisation or customisation of product lines have opened up opportunities and we need to seize those, which is what the initiative is about.

I also recognise the point Deputy Coffey rightly made that Waterford and the south east have suffered disproportionately. As the Deputy knows, after the TalkTalk closure, I established a forum on the south east and put a special focus on Waterford through the IDA and, as the Deputy acknowledged, there has been a big step up in activity. We have had some successes. For example, Nypro, a multinational company, made a significant investment in Waterford. We have further ambitions. It is encouraging also to see in the south east a strong resurgence of many indigenous enterprises, including Glanbia, Dawn Meats, Eishtec, which has been stellar in its performance since the closure of TalkTalk, and FeedHenry. There is good activity in the area, but I will continue the emphasis on the south east and to target my activities.

See this speech in context