IFA condemn Greencore decision to close sugar factory
The Irish Farmers' Association (IFA), which will hold a national protest march in the town tomorrow, made the accusation after claiming there was no justification for the closure.
Carlow IFA chairman John Kehoe said the factory, where sugar has been processed for the past 80 years, made a profit of at least €10m in 2004 and would make a similar profit this year if it is kept open.
Mr Kehoe said Greencore accounts for 2004 showed profits for its ingredients and agri-business division up 4% to €47m with the Carlow plant alone contributing an estimated €10m.
"Greencore's move is totally premature and unjustified and is motivated by pure greed and profit-seeking. The company's claims that the closure is being forced by the EU sugar reform simply don't stand up because serious negotiations on the reform have not yet even begun," he said.
Farmers, workers, business people, politicians and community leaders are expected to take part in tomorrow's protest march, which will assemble at the Fairgreen Shopping Centre at 11am and proceed to the sugar factory gates on the Athy road.
The closure of the Carlow plant in March is part of a major Irish Sugar rationalisation programme, which will result in the loss of 189 full-time jobs and 137 seasonal jobs and the consolidation of all sugar processing in Mallow.
Irish Sugar, part of Greencore, stressed that the decision to close the Carlow plant was unavoidable and that the consolidation of production in one processing plant in Mallow was absolutely necessary.
Chief executive Dr Sean Brady said he was somewhat disappointed by the failure of some commentators to understand the urgency of the situation. "Our competitors in the EU are not standing still they are reducing their already lower cost bases and are looking to use their scale to move into smaller vulnerable markets such as Ireland.
"Regardless of the outcome of the reform negotiations, we will still have to compete in a changed marketplace and this means that we must cut costs now or see the Irish sugar manufacturing industry decline and die over the next few years."
