Apple's plans poses jobs threat for Cork plant

Cork's Apple computer plant is facing another crisis, with some of the 1,400 jobs in jeopardy in a corporate restructure, industry sources said last night. The renewed concerns about the plant come despite the success of Apple's new iMac computer, which is manufactured in Cork and other locations.

A spokesman for the company last night said there had been rumours for some time about the future of the plant, but would not comment on whether a restructure had begun, or what the effect of such a move might be.

However, he insisted there was no question of Apple stopping its manufacturing operations in the Republic.

As well as the iMac, Apple makes the high-end G3 Power Mac portable computer at the Cork plant. Earlier this month, executives at the company said the new 400 megahertz G3 machine was by far the fastest computer of its kind on the market.

Last January, Apple closed its Claris subsidiary in Dublin, with the loss of 125 jobs. In March, the company said it was reviewing its operations in Cork, and industry analysts said the company was likely to close its printed circuit board (PCB) factory in the city.

In June, the Tanaiste, Ms Harney, and the then chief executive of IDA Ireland, Mr Kieran McGowan, travelled to Apple's headquarters near San Francisco, seeking a commitment from the company that it would maintain as many jobs as it could in the Republic.

The following month, Apple said it was moving its PCB plant to the Far East, with the loss of 150 full-time employees and as many as 400 part-time workers.

But on the same day, the company said the Cork manufacturing plant had been chosen as one of several around the world to make the iMac home computer. Because Apple's returned chief executive, Mr Steve Jobs, had already pinned most of the troubled company's hopes on the stylish new machine, analysts saw the decision to manufacture it in Ireland as a strong sign of Apple's commitment to Cork.

In the intervening months, the iMac has lived up to Apple's expectations, capturing the imagination of the computer world and reversing Apple's financial fortunes. Last week, the company announced a sharp rise in earnings for its first quarter; profits were $152 million (€130 million), up from $47 million in the same period the previous year.

The company sold more than half a million iMacs over the three months.

But the latest crisis appears to decouple the iMac's fortunes from those of Cork. Some analysts said last night the restructure could be a reaction to the remarkable success of the new computer which would see Apple consolidate its manufacture in one or two large plants. Such a move would represent a cruel irony for Cork, making it a victim of its own success.

Of the 1,400 workers at the plant, some 400 are part-time employees, the Apple spokesman said.