Global slowdown among factors which shut factory

A GLOBAL slowdown, competition from the Far East and a weakened US dollar were blamed yesterday for the closure of a Japanese chemical company with the loss of nearly 100 jobs.

Shocked staff at the Mitsui Denman plant in Little Island, Co Cork, were told the news by the company’s managing director Robin Gill.

He told them the parent company, Mitsui Mining & Smelting Ltd, based in Tokyo, had decided to cease manufacturing electrolytic manganese dioxide for the alkaline battery market and close the plant in the coming weeks.

The company, which has 92 full-time employees, had been involved in 24-hour production since it was set up in 1976.

“Over the past two years in particular the market place has changed radically. There has been a world slowdown in demand, excess production capacity and falling sales prices. The weaker US dollar has also had an adverse effect,” a spokesman said.

He said that other factors, including competition from the Far East and more rechargeable batteries available on the market, had caused problems.

“Against this background, the plant in Cork has been unable to sustain financial viability and the future outlook is such that a continuation of the business is not possible. The company is in an irreversible loss-making situation,” the spokesman said.

The company was producing 19,000 tonnes each year of electrolytic manganese dioxide exported mainly to the US and Europe. Tánaiste Mary Harney said she was aware of the effect this and other recent announcements had on workers and their families.

“I remain confident Cork is a prime location for attracting major investors,” the Tánaiste said. Mary Buckley, IDA area director, said she also regretted the news and said the IDA held a nominal shareholding in the company.

“We are strongly marketing the East Cork region and have had some successes. We are working very hard in that area,” she said.