Although not a complete bombshell because of continuing uncertainty at the plant, the sudden announcement of Ispat's withdrawal from Haulbowline in Cork Harbour was greeted with dismay yesterday.
Mr Paddy Barry, president of the Cobh and Harbour Chamber of Commerce, said the steel plant had served the harbour area since the 1940s, when it was State-owned. The sudden announcement that 400 jobs were to go was "shocking, saddening and upsetting". There would be enormous economic repercussions throughout the harbour area, Mr Barry added.
Mr Jim O'Leary, a SIPTU representative at the plant, said shop stewards had been called in early in the afternoon and told the plant was going to close. Mr Dan Boyle, the Green Party councillor on Cork Corporation, said Ispat's sudden departure was a callous move but indicative of the company's behaviour since its arrival in Cork. There had been many safety questions raised about the plant and Ispat had failed to answer them.
He said the company's departure "coincided neatly" with the end of its fiveyear agreement with the Government.
Under the agreement Ispat acquired the company for £1, £17 million of debts were written off and £20.2 million was paid by the Government to the Indian company. In return it agreed to a £30 million investment programme over a five-year period and the retention of at least 300 jobs during that time. Mr Boyle said yesterday there was no evidence that a substantial investment had been made at Haulbowline by Ispat.
Mr John Mulvihill, a Labour councillor and former Irish Steel employee, said the Government, as a matter of urgency, would have to produce a rescue plan for the 400 Ispat workers.
A self-employed sub-contractor, who now finds himself in the role of Ispat creditor, said he was owed a substantial amount of money by the company. "The company was operating on a 90-day credit system. Things were obviously very tight at Ispat and contractors like myself had been warned not to increase prices. This is going to have a devastating effect on the Cobh area and east Cork generally.
"A lot of the lads in Ispat are my age, mid-40s, and many of them are in their mid-50s and have worked there most of their lives. I just don't know how I stand at present. The signs were that Ispat was running down the plant," he added.
Mr Kevin Twomey worked at the steel plant for the past 31 years. Married with a family of four, his two sons were also employed at Ispat. He heard the news on a mid-afternoon radio bulletin. "It came as a bombshell. It's a very disappointing way to hear news like this," he said.
