Multinational consumer products group Procter and Gamble is preparing to make a significant number of its 500 staff redundant at its cosmetics plant in Nenagh, Co Tipperary.
Workers at the factory, which made profits of $10 million (€7.63 million) in 2005, have been called to a meeting this morning at which managers will disclose the outcome of a review of the operation. A large number of jobs are likely to be cut, but Procter and Gamble indicated that the plant will not close altogether. "We're not leaving Nenagh," a spokeswoman said.
She described as "pure speculation" reports that 300 jobs were under threat but declined to provide any further details about the group's plans for the plant, which makes products sold under the Hugo Boss, Oil of Olay and Max Factor brand names. Procter and Gamble has informed the Government that its review is complete, but it did not provide any information as to the likely level of job losses. Minister for Enterprise, Trade and Employment Micheál Martin said the Government would do what it could to support Procter and Gamble and its workers.
The group has not provided firm information about its intentions to IDA Ireland, the inward investment agency that has provided significant grant assistance to Procter and Gamble in the past.
"Right now we have no precise information as to what tomorrow's announcement will bring. We are aware of the difficulties they are facing and we are working closely with them," said IDA Ireland's spokeswoman.
Procter and Gamble said "the business is doing very well in Nenagh" but there was a strategic dimension to the review of its requirements for the European market.
The group has profitable financial operations in Ireland. TwoProcter and Gamble Dublin-registered holding companies - neither of which employed any direct staff - recorded profits of $1.15 billion in 2005. In the same year, another Irish unit paid dividends of $120 million to the parent organisation.
As workers expressed fears for their jobs, Opposition figures urged the group to reconsider its decision.
"The Procter and Gamble plant in Nenagh has been a tremendous benefit to the company's international operations and I would urge the company to think very carefully before making any drastic decision," said Fine Gael Senator Noel Coonan.
In a separate development yesterday, Canadian group Thomson Scientific confirmed plans announced last month to make 200 of its staff in Limerick redundant.