One of Sligo's longest established factories is to close in October with the loss of 133 jobs. Hanson Industries, which makes bathroom scales, said there was "no viable alternative to closure".
A SIPTU shop steward at the factory and a Labour member of Sligo Corporation, Ms Veronica Cawley, said it would be a severe blow for the town. "This is a lot of jobs for a town the size of Sligo. Practically all of the staff live in Sligo, so it will mean a lot of money lost to the town.
In a statement issued on Thursday evening, Hanson said it had experienced "severe trading losses" over the past number of years. It blamed the rising cost of raw materials, competition from low-cost countries and increases in labour costs. The weakness of the euro in relation to sterling had also been a factor.
"The company regrets that it is no longer viable to continue production in Ireland. Having explored various options to turn the business around, the company concluded that there is no viable alternative to closure," the statement said.
Staff have been concerned about the factory's future since Hanson and its parent company Terraillon Holdings were taken over last month by New Jersey-based Measurement Specialities Inc (MSI). It is believed that MSI does most of its manufacturing under licence in China.
Hanson was established in Chicago in the 1880s and has been in Sligo since 1963. In earlier years, kitchen scales and clocks were also made at the plant but production was gradually moved to low-cost countries like China.
A lot of the workers have been with Hanson for up to 30 years and many families were dependent on income from the factory.
