Glanbia not to rebuild Roosky plant

Glanbia has abandoned plans to rebuild its pigmeat processing facility in Roosky, Co Roscommon, which was destroyed by fire in May 2002 resulting in the loss of more than 300 jobs in the area.

Instead, it will restore capacity by upgrading its remaining facilities in Edenderry, Co Offaly, and Roscrea, Co Tipperary, at an estimated cost of €27 million, with the creation of 150 jobs.

The company said it had intended to rebuild the Roosky facility, which employed more than 400 workers before the fire broke out, but following extensive exploration of its options, it proved un-economic to rebuild the plant.

SIPTU, which represented most of the workers at the plant, said it was "extremely disappointed" with Glanbia's decision, which reneged on previous commitments and created major problems for its members, given the lack of alternative employment. Of the 340 employees affected by the fire at Roosky, 290 have already taken voluntary redundancy, Glanbia said.

However, SIPTU said the workers, who were on temporary lay-off, had little option but to take the package but had hoped to be re-employed at some later date.

The redundancy package has now been extended to include other administrative and support positions affected by the decision not to rebuild at Roosky.

Market sources estimate that the redundancy package will cost the company between €8 million and €10 million.

Glanbia will retain a cannery facility in Roosky, which employs 95 staff.

A company spokesman said no decision had yet been taken on what would happen the company's 40-acre site in the Roscommon town.

The upgrading of the other two plants will lead to the creation of 150 new jobs in Edenderry and Roscrea, resulting in a net loss of jobs at the company of 190.