THE Minister for Enterprise and Employment last night announced a new project in Dundalk, 24 hours after one of the town's main employers said it was reducing its workforce from 391 to 75.
Mr Richard Bruton said IDA Ireland had been aware of the difficulties at Key Tronic for some time and had tried over the last year to find a replacement industry.
EPC (Engineered Plastic Components Europe Ltd), which is setting up an operation in the Finnabair Industrial Park, is expected to create nearly 300 jobs. A US company, EPC, makes connectors for car electrical distribution systems.
A 25,00 sq ft advance factory is also to be located in the industrial park as a result of private sector investment.
Mr Bruton told a press conference in Dundalk last night he regretted the decision by Key Tronic to reduce its operations in Dundalk, but the workers there had skills applicable to EPC. He said no guarantee could be given that the redundant Key Tronic workers would find employment with EPC but it was a very positive opportunity for them.
EPC had bought some equipment from Key Tronic and FAS would be keen to ensure the workers got whatever retraining would be needed, he added.
The Minister, who met a number of workers and management from Key Tronic, said he could understand the frustration and bitterness of people at the decision.
Mr Bruton addressed a gathering of representatives of business and industry in the region and said EPC was an effective company that was strategically placed and was not a supplier that is over sourced. It is based in Michigan in the US.
A joint investment of £21 million has been undertaken by both the company and IDA Ireland.
EPC is 50 per cent owned by an existing company in Dundalk - AFL (Alcoa Fujicura) - and senior management at EPC have been operating out of AFL since the final decision to locate in Dundalk was made last August.
Project manager Mr Gene Norden said the recruitment of workers would be done very slowly. The company's long term plan was to employ 300 people within five to six years. He was not able to confirm what number would be employed by the end of this year.
He said there were good, confident and well qualified people in the town and there was a good possibility that some Key Tronic workers would be recruited.
The company, which was established in November 1986, has two plants in the US employing a total of 620 people. Its Dundalk operation will be supplying Ford motor cars in Europe and the automotive industry in Europe. The company had initially come to Dundalk and worked from the AFL plant within six days of deciding on Dundalk last August, Mr Norden added.
The Minister also said he was positive that an industry would be locating in the proposed advance factory. He added that the network of cross agency contacts that is established in Dundalk was better than the task force being called for in the wake of the Key Tronic decision.
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