Closures threaten more than 500 jobs at two plants

More than 500 jobs are in peril following decisions by Xerox and GlaxoSmithkline to close part of their Irish operations.

The decision of Xerox Europe to close its inkjet manufacturing facility in Dundalk puts more than 400 jobs at risk. The company said it would seek to redeploy as many of the staff as possible to its other operations in Dundalk. Around 350 people are employed in the inkjet manufacturing operation, while a further 70-80 people are employed in its wire harness operation.

In Waterford, GlaxoSmithKline announced 104 job losses at its Stafford Miller plant in Dungarvan, following its decision to end the production of toothpaste at the plant. The announcement compounded a bad week for the south-east coming just a day after Wexford Weaving closed down, putting 120 people out of work.

Mr Joe Browne, Xerox director and general manager for Ireland, said the company would continue to manufacture ink cartridges over the next two to three years.

"There will be, in that activity, an opportunity to redeploy and hold on to a number of people. It's too early to give precise numbers," he said.

The inkjet business represents nearly half of Xerox's operations in Dundalk, where 1,000 people are employed. Its other operations include colour toning and high-end print and production.

"The rest of the businesses in Dundalk are at the core of Xerox and always have been at the core of Xerox and are our future growth areas," said Mr Browne.

He also said yesterday's announcement would have no impact on the company's centralised and financial services support centre for Europe, based in Blanchardstown, Dublin.

The closure of the inkjet facility is part of the company's plans to exit from the small office/home office business due to its failure to find an equity partner.

Xerox has invested more than £300 million (€381 million) in its Dundalk operations. It has also received £31 million in IDA grants towards its Irish operations. The Tanaiste and Minister for Enterprise, Trade and Employment Ms Harney expressed disappointment and concern at the Xerox announcement.

"IDA Ireland is involved in close discussions with Xerox to maximise the potential for the Dundalk campus from the other elements of the company's business," she said.

"Our objective now must be to ensure the best possible outcome for Dundalk from the other aspects of Xerox business worldwide and negotiations to this effect will continue in coming days."

Referring to the job losses at Stafford Miller, Ms Harney said the news was a "particular blow" to an area of the State that had not fared as well as others in attracting new industry.