THE CLOSURE of the German- owned Amann Industries in Tralee, the second largest manufacturing plant in north Kerry, which was announced yesterday, has been described as “a catastrophic blow” for the region. The closure will see the loss of all 330 jobs and millions of euro in revenue, union officials and politicians said yesterday.
Siptu said manufacturing had virtually collapsed in the north Kerry region and it called for immediate intervention on electricity costs and special rates for industry to safeguard jobs.
Amann was the second biggest plant after Kerry Ingredients, it said. The Tralee plant produces high-quality technical sewing threads for the automotive, fashion and textile industries and the jobs are to go to China and Asia over the next year. Some 120 redundancies were announced in January in a restructuring programme aimed at saving the Tralee plant, with those jobs going to existing Amann facilities in Romania and Germany. However, the loss of the further 210 jobs came as a blow.
The jobs are to go in two main tranches over the next 12 months to China and Asia. The plant’s equipment is also to be removed to China, senior management who had arrived from Germany told workers at lunchtime yesterday.
High energy costs, labour and other manufacturing costs had led to “this regrettable decision,” the company said in a statement.
“The need to remain competitive in a very difficult, cost-sensitive market, combined with high labour, energy and other manufacturing costs have led to this regrettable decision,” it said.
Some 110 jobs will go in July when the spinning operation ceases and the remaining jobs in the filament twisting processes will be phased out over 12 months, also beginning in July. Fine Gael Kerry North TD Jimmy Deenihan likened the closure to the loss of Dell in Limerick and called for the midwest economic recovery group to be extended to north Kerry.
Sinn Féin TD Martin Ferris said the announcement was “catastrophic”.
Amann Tralee is a wholly- owned subsidiary of Amann Sohne GmbH, of Bonningheim, Germany. The Tralee operation opened in 1989 at the former Klopman textile plant in the Clash industrial estate in the town.
The maximum factory floor wage at the Tralee plant was €26,000 a year. The loss to the local economy will be over €11 million a year, according to Con Casey, organiser with Siptu.
Mr Casey called for immediate Government intervention on energy costs and said it should have ensured energy was provided at “a commercially appropriate rate” to safeguard jobs. Siptu said it would meet management on Wednesday to discuss redundancy arrangements.