Molex Ireland losses reached almost €8m last year

Pre-tax losses at Shannon-based electronic manufacturer Molex Ireland soared to €7.9m last year from €687,000 in the previous year.

Last month, the US owners of the company announced the closure of the plant with the loss of 500 jobs.

The closure of the facility — due to be completed next year — has been the biggest single jobs blow in the midwest since the closure of Dell in Limerick more than a decade ago.

The company said it closed the plant because most of the products made at the Shannon plant were not profitable enough.

The new accounts also show that revenues from the Irish-based firm fell by 6.5% to €87.3m.

It posted an operating loss of €7.6m and paid net interest payments of €251,000.

The accounts, which were only filed in recent days at the Companies Registration Office, were signed off in June but the attached directors’ report gives no clue to the decision taken by the US parent to shut the plant.

According to the directors’ report, “the company expects the general level of activity to increase and experience growth in turnover over future financial years. The company does not propose any significant changes to its principal activities.”

The directors do state in the accounts the risks facing the company include global pricing pressures and competitive pressures from emerging markets.

The figures show the plant employed 480 people last year, and staff costs rose to almost €28.2m in the year.