Future of Galtee Meats unclear despite assurance

THE future of the Galtee Meats plant in Mitchelstown, Co Cork, was in doubt last night, despite an assurance by Reox Holdings that there are no plans at present to cease manufacturing operations in the town.

Speculation that the plant is to close in June with the loss of over 100 jobs intensified yesterday and led to calls on Reox chief executive Jerry Henchy to clarify the situation.

Reox, the company formed as a result of the spin out of the non-farm dependent business activities from Dairygold Co-op last year, issued a statement in response to queries. “There are at present no plans by Reox Holdings plc to cease manufacturing operations at Mitchelstown,” it said.

Breeo Foods, a subsidiary of Reox, manufactures a range of meat products in the town and is also engaged in some processed cheese production.

Reox said Breeo Foods operates in an intensely competitive marketplace characterised by increasingly tight margins and must continually strive to maximise operational and production efficiencies.

“The viability of manufacturing operations at Mitchelstown is entirely dependent on remaining competitive in the marketplace that is constantly demanding higher efficiencies,” it said.

The Galtee factory was established 40 years ago to process pigs from farmers in the region into a range of meat products.

Slaughtering in Mitchelstown ended in 2004 with the loss of 170 jobs after the company maintained this sector of the business had become uncompetitive.

Pigs from producers in the region have since been slaughtered at non Galtee plants, but the company retained secondary processing in Mitchelstown

Deputy Ned O’Keeffe said the latest reported moves would be disastrous for the pig industry and would have serious economic consequences for Mitchelstown because of the job losses involved. The Fianna Fáil TD claimed Dunnes Stores had bought the Galtee Meats factory for use as a distribution centre, but this was later denied by a spokesman for Reox.