German car parts manufacturer Kostal reviews Irish operations

Company is a major employer in Cork and Limerick

Talks have taken place at car parts manufacturer Kostal as the company undertakes a review of its global operations, which includes plants in Mallow in Co Cork and Abbeyfeale in Co Limerick. 

Talks have taken place at car parts manufacturer Kostal as the company undertakes a review of its global operations, which includes plants in Mallow in Co Cork and Abbeyfeale in Co Limerick. 

Union representatives have met with workers and management of the German multinational to discuss a sustainable future for its Irish operations. The company is undertaking a worldwide review of its production of on-board chargers.

Kostal employs as many as 450 workers in its Abbeyfeale operation while several hundred are also employed in Mallow.  The company implemented a voluntary redundancy scheme last year in Abbeyfeale which resulted in approximately 85 job losses.

 “There has been much local concern about what impact this review could have on the Abbeyfeale plant. Siptu members in both the company’s facilities wish to work with management to ensure that the current review doesn’t have a determinantal impact on their operations," said Siptu organiser, Rory Hawkins.

"Several hundred workers, the vast majority Siptu members, remain employed making car parts including on-board chargers for electric vehicles. It is a major and important employer in the South-West region.

“We are committed to working with the management at the plants to ensure there is a sustainable future for its operations in Ireland, taking into account a recent downturn in demand for some of its products. The company’s operations in Ireland remain profitable and we are hopeful that we can work together to ensure that this vital employer, which has been in Ireland for 44 years, remains.”

Mr Hawkins called upon the Government and IDA to do all it can to ensure the future of these plants "and allay the very real concerns in the local community concerning this vital source of employment in both direct jobs and many hundreds more in the wider local economy".