The famous HB ice-cream factory in Rathfarnham, Dublin, is to close in mid-2003 with the loss of 180 jobs. But the company may continue to make some products at an alternative location in Ireland.
Anglo-Dutch company Unilever Bestfoods Ireland told employees yesterday that the Rathfarnham plant was no longer competitive on the European market and closure was the only option.
SIPTU Branch Secretary, Mr Brian O'Neill, told The Irish Times the news was "very sudden". "This is a serious blow for the employees. It's a terrible announcement in the mouth of Christmas. They have to come to terms with the news and it's not pleasant for them," Mr O'Neill said.
The employee profile at the Rathfarnham factory is mixed but most have been there for many years. "HB was seen as the local employer for the area. Many will have difficulty in securing employment next year," he added.
"Unilever have closed a number of different factories in various countries - it's what they do, they tailor their factories," Mr O'Neill said. "Sentiment doesn't come into it."
A rationalisation plan was negotiated with the management last year to make the company more cost-effective and to safeguard jobs. However, a recent strategic review of sourcing led to the decision to close the Rathfarnham plant.
"Employees were told last year about a review of European ice-cream sourcing operations," Ms Mary Finan, spokeswoman for Unilever Bestfoods Ireland, said.
"The trend is to have more specialist plants with large-scale production. We have a catch-22 situation in Rathfarnham, where it's too large for the Irish market alone but not sufficiently specialised enough to compete on the European scale," Ms Finan said.
Labour leader Mr Pat Rabbitte said the closure indicated a "worrying rate of attrition in the indigenous manufacturing sector" and called for Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney, to intervene in order to save jobs.
Unilever management is now looking at joint-venture opportunities to continue producing selected HB core products at an alternative location in Ireland.
"Management are committed to continuing local sourcing and are confident they'll be able to achieve it," Ms Finan added.
She said Unilever management was trying to assist its Rathfarnham employees by giving them as much notice as possible and intended setting up an internal employment agency.
HB ice-cream was originally established at Hazelbrook Farm in Terenure, Dublin, in 1926.
The Rathfarnham plant produces 15 million tonnes of ice-cream per year. Unilever Bestfoods Ireland took over the company in 1973.
It owned 23 plants in western Europe in 1995 but owns just 10 plants today.