Written answers

Thursday, 25 April 2013

Department of Jobs, Enterprise and Innovation

Job Creation Issues

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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89. To ask the Minister for Jobs, Enterprise and Innovation the position regarding a facility (details supplied) in County Kerry; and if he will make a statement on the matter. [19655/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The facility in Killorglin has been in operation since its establishment in 1970 by a German company, and manufactured safety and anchor bolts used in the construction industry. Peak employment at the factory was in the early 1980's when it employed 95 people. The business was acquired in 2008 by a California based manufacturer of metal fixings and hangers used in construction of wooden frame housing. Employment had gradually declined to approximately 30 by 2011. By this time, the plant was consistently loss making and on a 3 day week. In former years, only about 20% of the company's output was sold on the Irish market but latterly this increased as total sales declined.

In 2012, IDA Ireland was informed that the US based parent company had decided to exit this particular market in Europe and to consolidate their business units and concentrate on traditional products particularly for the timber frame sector. The decision was influenced by the construction downturn, both in the US and Europe. The company was marketed as a going concern in mid-2012 without success. The Killorglin product line and rights to production for Europe was sold to a Finnish company in late 2012 and this company plan to manufacture the products in their own plant in Finland.

The premises are still owned by the US parent company and this company, with the 7 remaining staff, are in the process of overseeing the sale and disposal of the remaining equipment. This work is likely to be concluded by May/June 2013, at which stage the plant will be finally closed. The factory and lands have now been offered for sale. The IDA has worked with the company in a search for a new owner and Enterprise Ireland has also been made aware of its availability as a possible location for one of that Agency's client companies.

Unfortunately, given the combination of various circumstances including the fact that the facility dates from the early 1970s, it has not proven possible to date to secure a new occupier. It is, of course, very disappointing that this factory, which provided employment for several decades in Killorglin, is now closing, due to external market factors and changes in the industry worldwide. I have, however, asked the development agencies to continue to do all they can to find a replacement company for the Killorglin plant.

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