Braun plant may be sold as part of Gillette overhaul

The Braun plant in Carlow, which employs 1,000 people in the manufacture and assembly of personal care products, may be sold as part of a major overhaul of Gillette's, its owners, operations.

An IDA Ireland spokesman confirmed last night that its officials had been in the US in the past few weeks, meeting executives from Gillette, the world's biggest razor manufacturer, regarding the Carlow plant.

"They are keeping us briefed on the situation, but at this stage it is too early to say what will happen," the spokesman said. "We reckon it will be some months before there is any firm decision on any aspect of the Braun operations."

The Carlow plant is well-regarded and has been to the forefront of many of Braun's innovations. It is mainly engaged in manufacturing hair dryers, curling tongs and other hair styling products.

The company has been in Carlow for around 20 years and is generally regarded as a well-run operation. It is also a major contributor to the local economy.

However, productivity, profitability and work practices will be under scrutiny in deciding the plant's future, according to industry sources. The operations of "white goods" manufacturers are under severe pressure from cost countries in eastern Europe and the Far East.

Gillette has been talking to buyers interested in purchasing parts of its Braun division, but may not sell all its operations.

The company has been under pressure for months to sell Braun and other under-performing businesses. Gillette has asked JP Morgan to explore options for Braun.

The parts of Braun under review are household appliances, hair care and diagnostics, which together generated $550 million (€547 million) in sales last year.

Gillette will keep the hair removal and oral care side of the division. Braun's sales totalled $1.6 billion in 1999.

Braun profits plummeted 55 per cent in the final quarter of last year, making it the worst performing division after stationery products.

The malaise has also touched Gillette's core razors and blades business, where profits dropped 18 per cent in the last quarter.