The Sara Lee textile manufacturing plant in Killarney, Co Kerry, is to stop production in the next few weeks with the loss of more than 90 jobs, a statement from the company announced yesterday.
The plant, which manufactures seamless ladies' underwear for the European market, will cease production between February and March. Mr Daniel Marie, vice-president product sourcing, blamed over-capacity in the seamless knitted product.
"Despite having made considerable progress in operating performance, we do not believe that the market will require this amount of capacity in the foreseeable future," he said.
Sara Lee greatly regretted the job losses and would do all it could to assist its employees in finding employment, Mr Marie said. Meetings with the trade unions, work force representatives and the 92 employees would start immediately and Sara Lee (Ireland) Ltd would be providing an employee support programme including one-to-one consultations with employees.
The factory opened in 1999 in the former Pretty Polly tight manufacturing plant, also owned by the Sara Lee corporation, with the promise of 300 jobs. Some £14 million was invested in the premises, and more than 200 were initially employed. However, it began shedding jobs in late 2001/2002.
Mr Jackie Healy-Rae, the Independent TD, was widely credited with securing the factory for Killarney in 1999 in exchange for his support for the then government. He said yesterday the news was "a frightful blow" and "a bleak outlook for the town after Christmas. He had contacted the Minister for Enterprise, Trade and Employment, Mr Martin, and asked him to visit Killarney.
The losses come on top of the announcement that 30 jobs are to go at the Jet AHU factory in Killorglin which manufactures air handling units, Mr Healy-Rae said. Labour TD Ms Breeda Moynihan-Cronin said it was "devastating for Killarney" and was the latest in a series of major unemployment setbacks for Killarney and south Kerry.