Last paper mill in Ireland to close with loss of 70 jobs

The last remaining paper mill in Ireland is to close next month with the loss of 70 jobs.

The Jefferson Smurfit Group (JSG) said it had decided to close the plant at Clonskeagh, Dublin as it had become "uncompetitive".

The mill had once been the cornerstone of the company's operations, having been developed by Jefferson Smurfit Snr in the 1950s to meet an increasing demand in Ireland and overseas for corrugated box production.

Management and unions are to meet today to discuss a redundancy package for the 58 full-time and 12 part-time jobs.

SIPTU's printing branch secretary, Mr John White, said the announcement "came out of the blue", adding that the union would now look at redeployment options within the group.

"We knew things were not great but we were surprised by the scale of it. Smurfit was one of the principal employers in Clonskeagh and a source of good employment," said Mr White.

In a statement, JSG said: "The decision follows a detailed review of the mill's operation, which has become uncompetitive due to a number of key factors, including reduced market pricing, increased energy costs, higher environmental charges and changing market requirements for packaging paper grades.

"The mill will close in a month, thus allowing for an appropriate period for consultation with employee representatives and business partners."

Recycling company Repak said the closure was a significant blow for recycling in Ireland.

The Minister for the Environment, Mr Roche, also expressed regret at the closure of the mill, saying it "diminishes our capacity to reprocess paper for recycling in Ireland". However, he said, the plant processed a "relatively small" amount of waste by international standards.

He added that his Department had, in conjunction with its counterparts in Northern Ireland and Britain, recently commissioned a consultancy study to examine the feasibility of developing a new paper mill capacity in Ireland. The study is due to be completed by the end of March.

A Smurfit Group spokesman said the Clonskeagh mill recycled about 50,000 tonnes of paper a year, 20,000 tonnes of which was from consumers.

"We will continue to collect paper for recycling, and it will be exported to other Smurfit mills throughout the world," he added.

The group, whose corporate headquarters are located at neighbouring Beech Hill, will continue to employ 1,500 people at almost 20 locations in Ireland.

The Clonskeagh mill closure represents the end of an era, however, not just for paper-making in Ireland but for the Smurfit Group. The company was founded as a box-making operation in 1934, and bought four years later by Jefferson Smurfit, an English tailor who had until then been acting as an adviser.

The company initially concentrated on corrugated box production, and invested in two paper machines in Clonskeagh before obtaining an Irish stock exchange quotation in 1964. It made its first acquisition the following year, and now has operations in more than 20 countries, employing 30,000 people worldwide.

The local Labour Party TD, Mr Ruairí Quinn, said the closure was "part of a disastrous day on the jobs front in Dublin". The mill had been resident in Clonskeagh for over 50 years. "As such, it has provided employment for a couple of generations of local people, who must now face up to the search for new work."