Cork plant hit by cuts on the third spin of the wheel

Attracted by the low rate of corporation tax, a skilled English-speaking workforce and a factory ready for occupation, Apple plumped for Cork when choosing a location for its European manufacturing facility 18 years ago.

Based in the unemployment blackspot of Hollyhill, on the city's northside, the plant became the largest private employer in the city with a workforce of some 1,800. In addition, it spends an estimated £120 million in the Irish economy each year, creating an additional 2,500 jobs.

Apple's early years in Cork were marked by rapid expansion as the workforce and the plant quickly grew. But in 1992, the first storm clouds began to gather around the printed circuit board (PCB) manufacturing facility as Apple considered relocating it to the Far East. The 400 jobs in the division were saved as the company decided against the move on the basis that the production savings would be eroded by the cost of getting the product back to the European market.

In return for retaining circuit board manufacturing in Cork, the company asked for cutbacks and got them as workers made concessions in respect of canteen and transport subsidies and their medical scheme. However, the problems for the printed circuit board manufacturing division were not yet over. Some 12 to 15 months ago, Apple decided to close the PCB manufacturing facilities at two of its three manufacturing sites worldwide. The facilities at Sacramento and Singapore were the ones to go, providing yet another reprieve for the Cork section which employs up to 500 people.

Earlier this year, Apple's warehouses and distribution centre in the Netherlands were closed as all of the European operations were centralised in Cork.