Competition from China forces factory closures with loss of 87 jobs

TWO factories in Killarney, Co Kerry, are to close with the loss of nearly 100 jobs because of competition from China.

Seventy-one jobs are to go in Transmould, which manufactures fire detectors and plastic injection mouldings, while the 16-job Scott Tools is to cease operations.

An urgent call for Government action to create industrial employment in Killarney went out last night.

SIPTU official Donal Tobin, who represents the Transmould workers, described the closures as a big blow, coming on top of a mediocre tourist season.

“Overall, the picture is quite bleak. The Government has to take action to attract more investment into Kerry, and to Killarney, in particular,” he added.

“Two advance factories are available and the area needs far more jobs in manufacturing and services.”

Already this year, the Rosenbluth travel management company, Killarney, closed with the loss of 30 jobs, while there have been a series of major redundancies at the town’s Pretty Polly factory in recent years.

Transmould managing director John Sheehan said customers had gone to low-cost countries, notably China, in recent years. Management and employees had done everything possible to remain competitive, but demand continued its sharp decline.

“A comprehensive review of the cost structure at lower demand levels has concluded that it is no longer possible to maintain economically viable production activity,” Mr Sheehan said.

Redundancies in Transmould, part of the Cooper Menvier group, will start from early in the New Year and the manufacturing is due to finish by September.

Mr Tobin said that last January Transmould introduced a rationalisation programme, including 13 redundancies, and the union had hoped that would allow the company to trade into the foreseeable future.

Scott Tools, a specialist light-engineering company, has been in production in Killarney since 1969 and is to go out of business in November.

Chief executive Margaret O’Sullivan listed competition from China and a 30% rise in the cost of their basic raw material from Europe, high speed steel, as key factors. Other reasons included high insurance costs, rates, water charges, transport and increased oil prices.

“We’re very disappointed. We’re like one big family in the company,” she said.

Killarney mayor Brian O’Leary said he and the town council would be contacting the IDA and Tánaiste and Enterprise Minister Mary Harney to stress the need for investment in the area.

“The closures will have a serious impact on the people losing their jobs and also on the economy of Killarney,” he said.