Some 315 jobs will be lost when the electrical group Schneider closes its factory at Celbridge, Co Kildare, next April. The plant, which has been operating in the town for 26 years, will close with the loss of 315 jobs.
Schneider Electric Manufacturing Celbridge (SEMC), which makes electrical components used in industry, said it had to close the plant to remain competitive. Some 265 positions at the plant are permanent. There are also 50 temporary employees.
The manual operations located at the Celbridge facility will be moved to the Czech Republic, where operating costs are lower and which is closer to the company's fastest-growing markets, the company said.
Its automated operations will be transferred to one of the company's existing plants in France, closer to its research and development units.
The company's senior vice-president in Europe, Mr Pierre Tubary, said rising labour costs in Ireland had contributed to the decision to close.
Schneider's general manager in Ireland, Mr Alain Leroy, said the company's experience here had been "very positive" and had significantly contributed to the its development in Europe.
He added that Schneider would now assist its workforce in securing alternative employment. It will pay six weeks' wages per year of service to all permanent staff, and to temporary staff with at least two years' service.
The Tánaiste, Ms Harney, said while the job losses announced at Schneider, and 3 Com in Blanchardstown, Dublin, yesterday, were a "major blow", employment in Ireland was still growing.
"The Government will continue to pursue the policies which will keep unemployment down and which will enable our economy to generate new jobs to replace those which have been lost," she said.
SIPTU said it was shocked at the severity of the cuts and accused the Government of "inaction and indifference" over recent job losses.
Mr Mike Jennings, the union's regional secretary for the midlands and south-east, said the Minister for Finance, Mr McCreevy, and Ms Harney were "dozing" while workers were losing their jobs.
The Green Party leader, Mr Trevor Sargent TD, said the job losses at Schneider and the 640 positions lost at 3 Com underlined the need to "speed up" the activities of the new Enterprise Strategy Group.
"The Government must see the error of its over-reliance on foreign direct investment which is now being easily attracted out of Ireland to lower cost economies" he said.
He called on the Government "to stop playing PR games with people's lives and get serious about building local economies and supporting the home-grown enterprise sector".
The Kildare North TD, Mr Emmet Stagg, said: "It is incumbent on the Government to put together a definite recovery package for the area.
"They became far too complacent in recent years that the good times would last, and now it is the ordinary workers and their families who suffer as the economy deteriorates."
Schneider's other operations in Ireland will not be affected by yesterday's announcement.
