Cork company to close after 3 months

A showcase company which set up operations in one of Cork's technology parks just three months ago is to close with the loss …

A showcase company which set up operations in one of Cork's technology parks just three months ago is to close with the loss of 160 jobs.

The freight distribution company, Sealand, has told IDA Ireland it is to close its operation at the Cork Airport Business Park, an IDA spokesman confirmed yesterday.

The staff at the facility, which is Sealand's European distribution headquarters, and the directors of the business park were informed of the decision yesterday by Sealand management.

It is understood that the decision follows the acquisition of the US company in August by the Danish freight giant, Maersk, which has decided to transfer the operation back to Denmark.

READ MORE

An IDA spokesman confirmed that the withdrawal would take effect from next January and said the authority would be meeting Maersk management to try to reverse its decision.

"Sealand was still in its start-up phase in Cork so this news has come a major shock. It's very disappointing but we're going to be working hard to persuade Maersk to reverse its decision," he said.

A spokesman for the directors of the business park said they were disappointed to be losing such an important tenant (Sealand had leased a 40,000 sq ft facility in June), but said it was even more disappointing news for the workforce.

Sealand was heralded as one of the flagship companies to move into the new e-commerce technology park. It hoped to employ 300 people when fully operational.

Sealand and Maersk were unavailable for comment yesterday evening, but the Cork South Central Fine Gael TD, Ms Deirdre Clune, urged the company to immediately clarify its position.

She said: "This news will be a blow to the workers, many of whom have just recently taken up employment with Sealand. A lot of people gave up jobs elsewhere to join the company and now to be told they are going to be laid off is devastating," she said. "The news is all the more shocking because when Maersk acquired Sealand in August there was hope that they would expand the business, but instead there are a lot of people with families and mortgages facing an uncertain future," she added.