Another blow for Kerry with loss of 120 workers

SOME 120 workers in Co Kerry are set to lose their jobs as another manufacturer plans to move operations to lower-cost countries.

German-owned Amann Industries told its workers yesterday that it was cutting job numbers at its Tralee manufacturing facility to 220 from 340.

The company makes thread for the fashion, textile and motor industries, and plans to relocate the jobs to other group facilities mainly in Romania. Some posts will be moved to Germany.

There had been speculation over the past few weeks that the company was planning to cut job numbers or to shut its Irish operation entirely.

Con Casey, local branch secretary with the union Siptu, told The Irish Times yesterday that workers were shocked and horrified at the extent of the cuts.

He added that the union would meet management on Monday to discuss redundancy terms for those who will lose their jobs.

A statement from the company said management was entering into an immediate consultation process with employee representatives aimed at reducing the workforce from 340 to 220 employees during 2009.

The jobs that the company has targeted are in the areas of winding, dyeing and finishing the threads it produces.

Frank O’Reilly, managing director at the Tralee plant, blamed overall manufacturing costs as well as the ongoing recession for the decision.

“The requirement to reduce overall manufacturing costs, combined with the impact of the continuing recessionary trends throughout global markets, make this regrettable development a commercial necessity,” Mr O’Reilly said.

He thanked the company’s loyal workforce for its contribution over the years “and especially now during this difficult period”.

Amann set up in Tralee in 1998 after buying the former Klopman textile plant.

Local politicians said the job losses, on top of those announced yesterday by another German company, Kostal, at nearby Abbeyfeale and at Mallow, Co Cork, where 300 people face redundancy, marked a black day for the region and were much higher than expected.

Local Sinn Féin councillor Cathal Foley, who flagged the job losses last week, said he expected a reduction in working hours or some job losses, but nothing on the scale announced.

“This is deeply disappointing news for the workers and their families, and it is grave news for Tralee town as a whole.

“While nobody denies the effect of the global downturn, the fact remains that successive governments . . . have done absolutely nothing to bring investment to Tralee.”

The Tralee company’s parent, Amann Sons, has been in business for 150 years and has operations across Europe, as well as in Morocco, Turkey and the US.

There were a total of 700 redundancies announced yesterday, including those in Amann, Kostal and Dublin Bus. Over one in 10 workers are expected to be out of a job by the year’s end.