The multi-million-pound toys and games business has brought a modest spin-off bonus for the business of two Irish companies, as the Waterford plant of the multinational, Hasbro, pursues a vigorous policy of import substitution.
Two small but extensively used plastic components - dice and squeakers - are the subject of the latest transfer of manufacturing contracts from the Far East to Ireland. Hasbro, which this year marked 20 years in business in Waterford, makes some 450 different products in the games, toys and puzzles field.
The multinational spends £28 million a year on materials such as cardboard boxes, printing, plastics, labels and services.
The huge quantities of dice required for its board games used to be imported from the Far East, but Hasbro has found a supplier in Cork which can compete successfully. The purchasing manager of Hasbro Ireland, Mr Noel Norris, says the business is worth about £135,000 a year and that the Cork supplier can beat the competition from the Far East, although the price Hasbro pays will be the same.
"The freight costs are less and the Cork company can deliver in five weeks, while we had to wait 22 weeks for deliveries from the Far East," he says. It was no simple matter for the company involved, Ardtech Industries Ltd, of Drimoleague, to take on the job. The contract involves sup- plying 300,000 sets of 16 dice, in seven different languages.
"We had to put a great deal of study into it," Ardtech managing director John O'Regan says. The challenge was to develop an automated system for the manufacturing and packaging process.
"That's what made it possible here. It would be very difficult to compete with eastern labour costs." However, the company can also give a more flexible response to changes in requirements. Mr O'Regan says they are looking at the possibility of supplying some other Hasbro products.
Meanwhile, supply of squeakers (which give many soft toys their familiar discordant screech) has been transferred from the Far East to a firm in Athlone. That business is worth about £150,000.
Hasbro says a company in Wales recently won the contract to supply Monopoly play pieces worth £250,000 and an English company is supplying timers worth almost £40,000 a year.
The Waterford complex, employing 600 people, produces 18 million games a year in 25 languages for 31 markets. Its managing director, Pat Gilhooly, says: "We currently source 96 per cent of our materials in Europe and the remaining 4 per cent comes from the US and the Far East. From 1998 and beyond, we aim to have 100 per cent European suppliers."