Limerick poultry plant to close with loss of 138 jobs

Food ingredients giant, Kerry Group, is to close one of its subsidiaries with the loss of 138 jobs, it emerged last night.

The group confirmed that it plans to close the Kantoher Chickens processing plant in Kileedy, Newcastlewest, Co Limerick, in the first week of March.

Management told the 138 workers at the plant about the firm's decision late yesterday.

Trade union officials reacted with dismay last night. Mr Ger Kennedy of SIPTU, which has 120 members at the plant, said that the announcement was the first indication it had that there were problems.

"We are not accepting this decision by management at this point in time until we have had a good look at the reasons behind it and we have explored every other possibility for the future of the plant," he said.

"This is a huge blow to the workers involved and to the local community. The level of industrial work that would be available in the region would be scant."

A Kerry Group spokesman said the company planned to offer workers the chance to take up alternative posts in other group plants.

The alternative plants will include its food ingredients operation in Charleville, Co Cork, which is currently expanding, and its factory in Listowel Co Kerry, where demand for workers is also increasing.

Mr Kennedy said the union was prepared to explore "any and all opportunities for the retention of jobs".

The group spokesman said the company will negotiate redundancy terms with workers that do not choose redeployment to other Kerry facilities. Forty local farmers supply Kantoher. Western Brand Chickens, one of its bigger competitors, has agreed to take on their supply contracts.

The Kerry Group spokesman said the firm decided to close the plant because it was not viable in the face of competition from five bigger rivals. "Regrettably we have reached a point where we have no other option," he said.

"The market is very competitive and there is overcapacity in the processing industry.

"The plant is small by industry standards and we couldn't contemplate further investment," he added. Kantoher Chickens has had trading difficulties in the past. Kerry Group bought it out of liquidation in 1992.