Repair plant sale not to cost jobs

NO JOB losses are expected at SIFCO Ireland, the Cork-based aircraft engine-repair operation, once the sale of the company is completed as expected next month.

SIFCO Industries, the division's US-based parent, has agreed the sale of its Large Aerospace Turbine Engine Component Repair business based at Cork's Mahon Industrial Estate to Swiss company SR Technics for approximately $9.8 million (€8.04m). The deal is expected to be finalised, subject to certain conditions being met, towards the end of April. SIFCO Ireland employs between 400 and 500 people.

SR Technics, which is based in Zurich, is a global leader in the area of technical solutions for aircraft, engines and components. It recorded operating profits in 2004 of CHF1.2 billion (€760,000).

According to a spokesperson for the company, the acquisition of the Cork operation which was established in 1983 meets SR's plan to expand outside of Switzerland. The Irish business will be its first foreign-based engine overhaul operation. With regard to the jobs situation, the source failed to comment on potential future expansion plans, but did say that job losses were not planned.

"This is not an industry where you take skills availability for granted. The know-how and skills already in the Cork facility are a real bonus to the deal. The high-skilled workforce there was actually seen by us as being an essential ingredient in being attracted to the deal."

The Cork facility provides turbine component repair services on General Electric, Snecma, Pratt & Whitney and Rolls-Royce large commercial airline turbine engines. It has a long history of serving as much as 90% of the world's major airlines and overhaul shops with high quality and efficient component repair services.

A statement issued by the Swiss company added that: "the acquisition substantially enhances SR Technics' engine repair and integrated engine solutions offering for large commercial aircraft engines. Under SR Technics' ownership, management and employees at the acquired organisation will continue to serve its extended customer base."

SIFCO, which has its global headquarters in Cleveland, Ohio, is not leaving Ireland totally.

According to SIFCO global chief executive, Jeffrey Gotschall: "This acquisition sees the Large Aero Turbine Component Repair business move forward under the ownership of a new aviation services industry parent. It brings with it opportunity for stability, investment and expansion and it allows us to focus on the expanding Industrial Turbine Repair and Manufacturing business located at our Carrigtwohill facility."