80 jobs lost in west as companies cut costs

More than 80 jobs may be lost west of the Shannon as a result of "restructuring" within two separate companies in Connemara and…

More than 80 jobs may be lost west of the Shannon as a result of "restructuring" within two separate companies in Connemara and Co Mayo.

Údarás na Gaeltachta has confirmed that it is in discussions with Silcotec Europe over the loss of about 40 jobs at its manufacturing plant in Carraroe, Co Galway.

In Westport, Co Mayo, the printed healthcare packaging company Field Boxmore intends to make 42 redundancies. Silcotec Europe employs 55 people at its plant in the Carraroe industrial estate, where it makes cable harnesses for the electronics industry. However, the recent decision by a key customer to transfer orders to the Czech Republic has come as a severe blow to the company.

A spokesman for Údarás na Gaeltachta said that it had been informed that about 40 staff would have to be let go by the end of the year. The authority, which grant-aids the plant, has been told that up to 15 staff may be retained for sales and marketing. "We have a good lead-in time to find alternatives, and the factory is not closing," he said.

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"Ongoing market pressure" has been cited as the main reason for Field Boxmore's decision to make 42 redundant at its plant in Westport, Co Mayo. The Chesapeake Corporation company, which is a leading European supplier of folding cartons, leaflets and labels, bought Berry Printing in Westport as one of more than 45 locations worldwide.

The company said that it had undertaken a review of its manufacturing capacity and had noted that the marketplace was becoming "progressively more global" as customers relocated to lower-cost economies.

David Lennon, managing director of Field Boxmore's pharmaceutical and healthcare division in "region two", said that trading conditions "continue to be typified by strong price pressure and margin erosion", and the action was considered "essential to create a sustainable business".

The company said it was committed to a "thorough consultation process" with its staff and union representatives in relation to the redundancies.