A total of 280 workers at the Procter and Gamble plant in Nenagh, Co Tipperary will lose their jobs by the end of 2009, it has been announced.
Staff were informed of the news at a meeting this morning, although the cuts were widely expected after local speculation and media reports yesterday.
Production manager Mindy Thompson
After a year-long review of operations across Europe, management revealed details of the cost-cutting plans to the 600 employees at the Nenagh factory, which made profits of $10 million (€7.63 million) in 2005.
Procter and Gamble has been based in the town for 25 years employing hundreds of local people making Max Factor, Oil of Olay and Cover Girl cosmetic products for the world markets.
In a statement this morning, Procter and Gamble said the factory would remain open and will continue manufacturing Cosmetics for supply to all European markets, securing 220 jobs at the plant.
"With regret it has been announced that over a two year period, the skincare production at the Nenagh plant will move to a new plant which is planned for Lodz, Poland and is expected to be completed in 2009," the company said.
The new plant will manufacture all skincare products which are currently made in Europe for Procter and Gamble.
"This decision is expected to result in the loss of approximately 280 jobs at Nenagh plant by the end of 2009," the company said. "Given the growth of Procter and Gamble's skin care business in central and Eastern Europe, it was decided from an economic and financial perspective to locate the source of skin care production closer to these markets which are growing fast.
"The cosmetics business is more complex, higher value, and is distributed differently with more focus on western Europe. Production of cosmetics therefore remains at Nenagh following the necessary rationalization of the day-to day running of the plant to ensure its long-term sustainability."
Plant manager Mindy Thompson said: "This was a difficult decision taken on the basis of market trends and not a reflection of the high quality work of our employees at Nenagh.
"Our focus now is to work closely with our employees to ensure they are supported at this time and through the transition ahead. We will maximise the opportunity we've been given for the future of the Nenagh plant to become the focus of our European cosmetics supply chain operations."
Management at P&G revealed last year it was carrying out a review of its Irish and European operations with a view to cutting costs. Some 75 jobs were cut when it announced it was planning to invest in a factory in Poland.
Minister for Enterprise, Trade and Employment Micheál Martin said the news was "very disappointing".
Minister for Enterprise Micheál Martin
"I am conscious that this has been a difficult period for the workers and their families with the past year bringing a lot of uncertainty. Since it was announced that Procter and Gamble was carrying out a review I have remained in close contact with both the company and the IDA," he said.
"While the fact that 220 jobs will be maintained at Nenagh is to be welcomed, in the intervening two years Fás and the other agencies of the State will give the workers losing their jobs every possible support in securing alternative employment. It is clear that the workforce in Nenagh has performed very well and this decision was a global strategic one and not based on the performance of the workers."
Local Fianna Fáil TD Maire Hoctor said North Tipperary must be a priority for IDA investment following the announcement.
Labour Party senator Kathleen O'Meara said that news comes as the "largest and most significant in a list of job losses and represents a body blow to the town and to the entire county of North Tipperary".
"Unfortunately these job losses are part of a wider trend that has emerged in the area in recent years. Following the closure of GMX in Thurles, Aventis in Nenagh and threatened job losses at Erin Foods, North Tipperary is haemorrhaging many long-standing traditional manufacturing jobs."