GSI lost almost $56m in final year of operation

GENERAL Semiconductors Ireland, which closed in Macroom with the loss of 670 jobs made losses of almost $56 million in its final year of operation, accounts lodged with the Companies Registration Office (CRO) reveal.

The closure of the plant in 2001 caused a furore in the town and subsequent election promises by Taoiseach Bertie Ahern that Elan would utilise the empty GSI plant to create 300 new jobs in a bio-pharmaceutical manufacturing plant were unfulfilled.

The massive pre-tax losses at the Macroom plant in the 12 months to December 2001 came to $55.89m on a turnover of $147m. In 2002 GSI made pre-tax profits of $13.13m on a turnover of $224.5m according to the figures submitted to the CRO. The figures also show $10.3m in grants was repaid to the State. IDA figures show GSI repaid 9.2m in grants in several tranches in 2002.

However, the figures show that just 500 people were employed at the company in 2001 compared to the accepted job loss figure of 588 permanent and 82 temporary staff at the time the company closed down.

In 2001 there were 450 production workers, down from 783 in 2000 and 40 management and administrative staff, down from 51 in 2000, according to the accounts.

Staff costs were $12.8m in 2001, down from $20m in 2000.

The directors, listed as PGM O’Sullivan, S Cowman, R Grange and S Page were paid a total of $1.3m in 2001, up from $316,915 in 2000, an increase of 314%,

General Semiconductors operated in Macroom for 20 years before the work carried out there was relocated to more cost-competitive Asian sites.

At the time the company said the decision to close what was then a flagship operation in Macroom was part of a plan to respond to a 30% drop in the overall semiconductor market 2001.

A special task force was established by Tánaiste and Enterprise Minister Mary Harney to find a replacement industry but the massive factory remains empty.