Biscuit-maker Jacob Fruitfield is to close its manufacturing facility in Tallaght with the loss of 220 jobs. The redundancies will take place on a phased basis from September 2008 through to early 2009 and it plans to outsource production. Ciarán Hancock, Business Affairs Correspondent, reports.
Jacob Fruitfield said a fund of more than €10 million has been committed to provide financial support for workers.
"This support will include generous redundancy terms and support for retraining and identifying new jobs," the company said.
The plant in Tallaght opened in the early 1970s and manufactures a range of biscuits, including top sellers Fig Rolls and Kimberley and Mikado.
Jacob Fruitfield chief executive Michael Carey said the factory was "significantly oversized for its output".
He said the plant had a capacity to produce 60,000 tonnes of biscuits annually but output was just 10,000 tonnes a year.
"Unfortunately, it's a decision we had to take," Mr Carey said. "The brands will continue and we will continue to be involved in a range of manufacturing companies in Ireland."
Jacob Fruitfield is the biggest player in the Irish biscuit market with a 34 per cent share. It expects to achieve turnover of €110 million in 2007.
The group said it would continue to operate its head office from site on the Belgard Road in Tallaght. This will include sales and marketing, finance and administration functions.
The company will employ 120 staff in Ireland after the closure, including 50 in manufacturing. It has a sauces and jam factory in Drogheda; a wafer-making plant in Gweedore, Donegal; and a biscuit facility in Cork.
"We also plan to establish an innovation centre to develop and research a range of long-life ambient food products," Mr Carey said.
Jacob Fruitfield last year outsourced its warehousing operation to a company called Ross Castle, which resulted in 34 voluntary redundancy.
The site in Tallaght sits on 20 acres, which would be ripe for redevelopment. Mr Carey said the decision to shut production was based on inefficiencies and not related to "property issues".
Jacob Fruitfield owns two prime sites in Tallaght - the 11-acre Blessington Road facility once used by Fruitfield has already closed.
The food group last year spun out the sites into a separate company. The properties are valued on its books at €83 million.
Siptu official Peadar Nolan said the potential windfall from the sale of the sites was "a subject on the lips of workers in the business". Mr Carey declined to comment on plans for the site.