Shock as 180 jobs go at hearing aid firm

A DANISH company which runs the country’s only hearing-aid manufacturing firm is to close its Cork-based operation within weeks with the loss of 180 jobs.

The news came as a complete shock after a good year for the company, staff said last night.

GN ReSound A/S, a subsidiary of GN ReSound A/S of Taastrup, Denmark, confirmed its facility in Model Farm Road Technology Park - in Enterprise Minister Micheál Martin’s constituency - will close by March 31.

Production will be transferred to what the company said was its lower cost operation in China.

There were unconfirmed reports last night Chinese workers will receive training at the Cork plant over the coming weeks.

The company said the facility performed well in recent years but said the decision to close was part of its plan to consolidate manufacturing into China and distribution activities in Denmark.

Peter Lindquist, senior vice-president and head of global operations, broke the news to staff just before 4pm yesterday.

“The Cork site has performed excellently, particularly over the past number of years, and this was a very difficult decision for us,” he said.

“However, the corporation has to maximise the low cost base we have in China from a manufacturing perspective. All non-manufacturing activities will be incorporated into the new global headquarters in Denmark.”

Staff reacted with shock. Some left in tears and gathered afterwards in the nearby Rendevous Bar.

“It was a total shock,” said Theresa O’Flynn from Onslow Gardens.

“We were told about a month ago we had a great year. Then we were told on Tuesday this man was coming over from Denmark,” she said.

“The company was lovely to work for. We have meetings next week to see what options are open to us.”

Her friend, Valerie Walsh, from Ballincollig, spent the last five years soldering tiny components under a microscope.

“We thought there might be some redundancies, on the evening shift maybe, but not the whole place,” she said.

Enterprise Minister Micheál Martin who is on a trade mission in India, expressed regret at the news.

“Obviously my first thoughts are for the workforce and their families.

“The State agencies will give every support needed and as always the priority will be to find alternative employment for those involved.”

Labour TD Kathleen Lynch described the decision to close the plant as “worrying”.

“The loss of hi-tech jobs is quite serious. It is very important that the IDA and FÁS move in quickly to ensure workers are redeployed,” she said.

Discussions on severance packages - understood in some cases to be six weeks’ pay for every year of service - will begin soon.

GN ReSound Ireland was established in 1994. The company was originally based in California. In July 1999 it was acquired by its current Danish owners GN Store Nord.

Other activities at the Cork facility included distribution, customer service and product introductions.