An investment of £19 million in two new projects involving the bathroom products manufacturer, Qualceram, will lead to the creation of 280 jobs in Arklow, Co Wicklow.
The first project is a joint venture between Qualceram and the Turkish company, Eczacibasi Karo Seramik, which will create 170 jobs. The joint venture company will be known as Vitra Ireland and will manufacture floor and wall tiles for the Irish and British markets.
The other 110 jobs will come from an expansion of Qualceram's existing operations a doubling of output from its acrylic plant and the commencement of bathroom furniture manufacturing. The jobs will be created over the next three years and will bring total employment at Qualceram to 440 people. The Tanaiste, Ms Harney, said securing the jobs was a major boost for Arklow which suffered a serious setback in January when the Noritake-owned Arklow Pottery announced it was closing down with the loss of 140 jobs. Ms Harney said she expected a significant number of former Arklow Pottery workers to be employed on the two projects.
Ms Harney has been under pressure from local politicians and business representatives to find a replacement industry for the town. Qualceram bought the Noritake plant in November and it will now be used by Vitra for the tile manufacturing operation, which will be in full production by the summer of 1999. Equity in Vitra will be held on a 50:50 basis by Eczacibasi and Qualceram, with both companies subscribing £400,000 in cash by way of share capital.
Eczacibasi is one of Turkey's largest industrial groups with a net turnover of $1.2 billion (£868 million) and more than 7,300 employees worldwide. Ms Harney said Eczacibasi was the first Turkish company to invest in the Republic, with the exception of firms in the IFSC.
She added that she hoped the company would consider other ventures in the Republic as it has several industrial interests.
Qualceram, in existence for a decade, reported pre-tax profits of £1.76 million last year with sales of £8.8 million. "This expansion will be spread throughout each of our divisions," said Qualceram chief executive, Mr John O'Loughlin. "The increased production over the coming years will enable the group to make further inroads into Britain and mainland European markets," he added.
