Manufacturing firm poised to axe 120 jobs

Around 120 jobs could be axed at a manufacturing plant in Sligo after the company today revealed plans to relocate overseas.

Employees at Tractech, which has been based in the town for 20 years, were told operations would be shifted to factories outside of Ireland.

Management at parent company, Eaton Corporation, said the firm had a number of sites manufacturing the same goods but not find enough buyers to support the level of production.

Ted Cox, vice president and general manager of Eaton’s Powertrain Controls Division, insisted the move was direct result of pressure to drive down costs.

“We have conducted a complete review of the business and determined that there is not enough business to support the operation of multiple facilities that build similar product,” said Mr Cox.

Employees attended a meeting with management today and were told about the proposal to relocate the Sligo business into other Eaton facilities abroad.

A date for closure has not been revealed and management will consult with staff and review all options open to them before a final decision is made, the company said in a statement.

“We operate in a global business environment that is intensively competitive and cost sensitive,” Mr Cox said.

“This review is a direct result of the competitive pressure being experienced by our customers and the requirements they have for us to continue reducing our manufacturing costs.”

The company is planning to re-locate the business out of Ireland and into other Eaton facilities.

Industrial manufacturer Eaton Corporation has 58,000 employees worldwide with sales of $9.8bn (€8.2bn) in 2004. Eaton sells products to customers in more than 125 countries, supplying electrical systems and components.