Seventy-five jobs will be lost with the closure in north Dublin of a computer plant formerly owned by Irish IT group Eurologic.
Network solutions provider Adaptec is shutting the operation at Clonshaugh, acquired several months ago in its estimated €35 million takeover of Eurologic, and transferring production to its manufacturing headquarters in Singapore.
The closure is another blow for Clonshaugh, which was devastated by the withdrawal two years ago of hardware giant Gateway, with 900 layoffs. Staff were informed of the decision yesterday morning. Around half the workforce will be let go by Christmas, with the rest leaving in March.
Adaptec said it was following policy of switching production to Singapore to boost economies of scale. A company spokesman said: "It was always planned to shift manufacturing to Singapore in order to minimise expenditure. The bottom line is that centralising operations makes the best financial sense."
One of the Republic's biggest private technology firms, Eurologic generated revenues of more than €100 million in the year to the end of June 2002.
Rather than choosing to float on the public markets like many of its peers during the bubble, Eurologic chief executive Mr John Maybury kept the firm in private hands during the late 1990s tech boom. But it is believed the sharp downturn in the data storage sector over the past three years persuaded Eurologic to sell.
Local Labour TD Mr Tommy Broughan said the closure was disastrous for Clonshaugh.
He added: "Once more, history is repeating itself. US firm Adaptec which recently acquired Eurologic has opted to transfer its Dublin operation to Singapore in a fashion similar to other major companies who invested in Ireland in the boom-times but who are now pulling out at an alarming rate."
With unemployment levels in north Dublin higher than the national average, the Government had a duty to step in and find new jobs for the area, Mr Broughan said. "Eurologic's employees, however, have been left high and dry. I am calling on the Tánaiste, Ms Harney to intervene on their behalf, and to source new employment opportunities," he added.
