A hearing-aid manufacturing company is to close in Cork with the loss of 180 jobs just 18 months after the Government promised it would expand.
GN ReSound announced yesterday that it is to close its facility at the Cork Business and Technology Park on the Model Road at the end of April and transfer all manufacturing to its base in China and all administrative functions to its parent company in Denmark. The company set up operations in Ireland in 1994.
Employees, who are non-unionised, were requested to attend an information meeting at the plant yesterday afternoon and informed of the decision by senior vice-president and head of global operations Peter Lindquist.
"The Cork site has performed excellently, particularly over the past number of years, and this was a very difficult decision for us. However, the corporation has to maximise the low cost base we have in China from a manufacturing perspective.
"All non-manufacturing activities will be incorporated into the new global headquarters in Denmark," he said in a statement issued after the meeting with workers.
Local Green Party TD Dan Boyle (Cork South Central) expressed regret and said it clearly demonstrated that Cork and Ireland were witnessing the displacement of jobs through globalisation.
"I find this decision even more perplexing as I, along with other local representatives, had attended a launch at the plant 18 months ago at which the then minister for enterprise, trade and employment, Mary Harney, announced an expansion of the activities of the plant.
"If a company on the one hand is announcing expansion plans and within 18 months announces intentions to close and relocate elsewhere, this has very serious implications indeed for our industrial relations policy," said Mr Boyle.
Minister for Enterprise, Trade and Employment Micheál Martin, who also represents the constituency, expressed his regret at the news and promised that State agencies would help the workers to find jobs.
"Obviously my first thoughts are for the workforce and their families as this is devastating news for anyone who will lose their job as a result of this announcement," said Mr Martin, who is on a trade mission to India.
Meanwhile, GN ReSound vice-president of Ireland operations, Seán Gayer, said it was a very sad day for him personally, for GN ReSound, and especially for the employees in Cork who had made a tremendous contribution to the company over almost 12 years.
In its statement, the company said it would begin discussing a severance package and was seeking co-operation and participation from staff in the scaling down and dismantling of operations between now and the end of April.
Management at the plant also pledged to set up an outplacement support service and a resource centre in the plant to help workers find other jobs.