Horseware lays off 51 staff after fall in US sales

A slump in US sales caused by the weakening of the dollar against the euro has been blamed for 51 lay-offs at Horseware, the Irish manufacturer of equine blankets and apparel.

With the US accounting for a third of revenues, the falling dollar has forced major cost cuts, culminating in the closure next Friday of Horseware's manufacturing plant in Kingscourt, Co Cavan, with 36 job losses, the company said.

A further 15 administrative staff are to be let go in new year rationalisation at the firm's Dundalk headquarters, said operations director Mr Mark Louth.

Cutbacks were unavoidable as the weakened dollar put US earnings under increased strain, Mr Louth said.

Horseware is also facing intense competition from the Far East with lower cost bases. In response, some manufacturing has been contracted to Asia but the firm's premium brands continue to be produced in the Republic.

"It's no secret that we are coming under pressure from Far East imports. Our response has been to amalgamate operations in Ireland," said Mr Louth. "These cuts were necessary so we could go on making our top-range products in this country," he said.

Eleven Kingscourt workers were offered jobs in Dundalk but only five accepted, he said.

According to the most recently available accounts, the company reported a €4.6 million gross profit on sales of €10 million in 2001.

Horseware was established in 1985 by Tom and Carol McGuinness. The post rationalisation workforce will stand at 122.