Radiator plant closure a 'total surprise' to staff and union

The Quinn Group is to close its Veha radiator plant in Wicklow Town , with a loss of 93 jobs. The plant has been a local employer for almost 40 years.

A spokesman for Siptu said that the closure has come as a total surprise to the workers, who were "shocked and shattered".

The plant, which manufactures the traditional round-top radiators, became part of the Quinn Group when it acquired the Barlo Group last year.

A review following the acquisition found that demand for round-top radiators was falling, and that the building would require extensive renovations to bring into line with environmental regulations.

It was decided that it would no longer be commercially viable to keep the plant open. Quinn operates another radiator plant in Clonmel, Co Tipperary, but the decision is a stand-alone one and will have no implications for Clonmel, according to Quinn.

A spokesman for Quinn said that the Clonmel plant serviced the more "trendy" part of the market.

"The radiators made there are of a different type, usually made to design for individual customers. This will have no effect on that plant," he said.

"As far as the Veha plant is concerned, demand for the older type of radiator is simply falling away right across Europe.

"That isn't the only reason though. It was a very old building, dating back from the 1960s and it had a number of environmental issues that would have required considerable investment."

He denied that this was a sudden decision, stating that the review had been set up when Quinn acquired the company.

Staff were informed yesterday afternoon and the plant is expected to close within a month.

Quinn subsidiary Sarcon acquired the company in April 2004 when it beat a management bid led by the then Barlo chief, Dr Tony Mullins.

Dr Mullins had offered 40 cent a share, or €70 million, in February of last year, but Sarcon trumped that with a 48 cent a share, €84 million bid.

Siptu representatives will meet today to discuss the announcement. "This has come as a total surprise to us, completely out of the blue," said the spokesman.

"We do not accept this closure as inevitable and we will be working to save as many jobs as possible."