Banta cuts Cork workforce by 200 as operation goes to Czech Republic

A COMPANY in a Cork unemployment blackspot is to shed up to 200 jobs (almost two-thirds of its workforce) early next year.

The Banta Corporation last night confirmed it is transferring some business from the European headquarters of its Banta Global Turnkey division in Hollyhill on the city’s northside, to the Czech Republic.

Up to 350 people (about three-quarters of whom are permanent) work at the Hollyhill plant. Up to 200 will be affected during the first quarter of 2007, the company said.

Banta employs 700 people in Limerick, but their jobs will not be affected.

The Cork plant specialises in the production of computer manuals, books, special-interest magazines, catalogues, direct marketing and literature management.

The company has two major customers, Hewlett Packard (HP) and Microsoft, and it is understood the HP work is being transferred to the Czech Republic.

The plant’s general manager, Brendan Costello, broke the news to staff in the canteen at 2pm. Staff knew jobs were on the line but were shocked by the size of potential job losses.

Fianna Fáil Cork North Central TD Noel O’Flynn described it as a devastating blow for the area.

“This company has given tremendous employment over the last 20 years,” he said. “Given the skills of the workforce, I hope that FÁS and the IDA be involved in the interviewing of staff to assess their skills and do everything in their power to place them in other areas.”

His party colleague Billy Kelleher said: “FÁS and the IDA will respond soon to upscale and train the workers and find them new jobs.”

Banta Global Turnkey closed its Dublin operation in 2003 with the loss of 65 jobs to consolidate its operations at Cork and Limerick.

Banta announced earlier this month it planned to make “strategic investments to better position its supply-chain management business to accelerate its growth and improve its competitive position”.

“As part of this strategic plan, some of the work from the company’s Cork facility will be transferred to a new Banta facility in the Czech Republic, which will help bring the company’s cost structure in line with the current competitive environment and customer requirements,” a company spokesman said yesterday.

He stressed there would be no change in employment between now and Christmas with a busy production schedule planned.

He said management would be doing all they can to attract more business in an effort to reduce the number of job losses.

“Banta will provide a redundancy package and out-placement assistance to eligible employees,” he said.

Meanwhile, the provisional liquidator for Castlemahon Food Products said yesterday he will be offering the poultry organisation as a going concern in newspaper ads this coming weekend.

Kieran Wallace of KPMG said: “We have been in there just 24 hours and it is operating as normal still. We are carrying out an assessment of the position and we will advise the employees and the growers when we go back to them within the next five days with the outcome of the assessment we are carrying out.”

Castlemahon Food Products in West Limerick was wound up by the High Court on Tuesday when the owners, O’Kanes of Ballymena, asked for a provisional liquidator to be appointed. The company has debts of €19m of which €5m is owed to suppliers.