Britvic to close plant in Cork with loss of 60 jobs

Restructuring: Soft drinks manufacturer Britvic Ireland is closing its plant in Cork with the loss of 60 jobs

Restructuring: Soft drinks manufacturer Britvic Ireland is closing its plant in Cork with the loss of 60 jobs. The company plans to consolidate production at its plant in Kylemore, Dublin, which will be upgraded with a €7.6 million investment.

Britvic Ireland managing director Billy O'Regan said the company regretted the decision to close its manufacturing facility at Little Island, east Cork, which has been in operation since 1982.

"Having considered everything, there was little choice but to close Cork and use our capability in Dublin," Mr O'Regan told The Irish Times.

He said the company had examined the possibility of relocating the manufacturing to Britain or the North but opted, instead, to invest in its base in Dublin.

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"We evaluated other options but felt that Dublin was the right one for us," he said.

Mr O'Regan said Britvic would achieve a 20 per cent reduction in its unit costs by switching the manufacturing to Dublin.

The Cork plant handled 3.5 million cases of soft drinks a year.

Mr O'Regan said talks would begin next week with Siptu on a redundancy package for workers, who have an average 17 years' service.

Britvic will continue to employ more than 900 staff in Ireland after the Cork facility closes. No new jobs will be added to its Dublin operation as a result of this move.

The job losses in Cork will take place on a phased basis over the next 12 months. Britvic said it would continue to employ 200 staff at its regional distribution centre in Cork and in the Ballygowan bottling plant in Newcastle West, Co Limerick.

"As a management team we are committed to assisting our Cork staff in identifying alternative employment and to providing appropriate out-placement support, as well as advice on issues such as pensions and financial planning," he added.

Britvic acquired C&C's soft drinks division last year for €249 million. At that time, the group said it planned to achieve cost savings of €14 million within three years.

Mr O'Regan said there were no plans for further restructuring.

Local Cork East Labour TD Seán Sherlock expressed disappointment at the announcement and said the move represented a bias in favour of Dublin.

Britvic Ireland's brands include Ballygowan, 7Up, Club Orange, Cidona and Pepsi.