The future of the AST computer manufacturing plant in Limerick is more uncertain following a surprise announcement that the company might move its entire European operation to the UK.
AST, which employs 430 people, has also terminated the contract of the Limerick site manager, Mr Martin Noonan. AST's vice-president, Mr Kurt Jun, is now overseeing the day-to-day operations at the company, which is preparing to let 148 people go next month.
In his statement yesterday, Mr Jun said the company is considering selling its Plassey plant and moving. "Should a sale of the factory take place, AST would then need to identify a new site to continue production in Europe. At this time, it is most likely that this site will be located in the UK," he said.
His comments, coming before scheduled meetings between its Korean parent, Samsung, and IDA Ireland next month, have fuelled growing concerns for the plant's future in Ireland.
Samsung had agreed to a series of meetings with the State agency next month to discuss its options in relation to the Limerick plant, and the latest announcement is understood to have taken the IDA by surprise. It has also led to strong calls locally for AST to clarify its intentions.
Reacting to the news yesterday, the Fianna Fail TD for Limerick East and junior minister, Mr Willie O'Dea, said the statement was "very ambiguous and disappointing" and raised fundamental questions about the company's commitment to the Limerick region.
The Mayor of Limerick, Mr Frank Leddin, said he was shocked at the announcement and even more shocked at the suggestion that the company might even decide to relocate in the UK. He expressed disappointment at the misery for so many of the 430 workforce.
Future of AST Limerick plant hangs in the balance: page 14