65 jobs to go as Glanbia’s takeover of Kerry gets approval

UP to 65 jobs will be lost as a result of Glanbia getting approval from the Competition Authority to acquire Kerry Group’s Limerick milk processing operations, in a deal worth €10 million.

Negotiations on the takeover were completed in January and have now been signed off following clearance from the Competition Authority.

The Kerry Group’s facilities in Limerick were located at plants in Clare Street and Lansdowne near O’Callaghan Strand.

Another 25 jobs will be lost in the Dublin operation, also run from Limerick.

The jobs losses will result from the transfer of some of the Limerick operation to Glanbia’s existing sites in Kildare, Louth and Dublin.

Glanbia said it had carried out a review ofthe business which was experiencing difficult trading conditions.

Glanbia’s chief operating officer, Frank Tobin, said: “We believe we can add more to the Golden Vale and Dawn brands by collecting the milk locally from the same farmers within the Golden Vale region, and process and distribute that milk through a more updated and state-of-the-art facility and depot within the Limerick area.”

He said there was an overcapacity of packaging in the milk processing industry and they will be able to meet their needs in the existing Glanbia facilities.

Another spokesperson said: “The reality is the need for consolidation in the dairy processing sector has been well documented and these redundancies, while unfortunate, are necessary if we are to retain our competitiveness and protect the existing business.”

A month-long consultation process with workers and their union representatives has commenced.

Limerick ICMSA chair Michael Lenihan said the move will cause concern in the local dairy community.

He said: “We accept that there has to be a degree of rationalisation in these matters and that Glanbia will direct these matters as they see fit. But it is a matter of regret that Limerick city will lose its Lansdowne production facility.

“Limerick ICMSA will try and protect the interests of the liquid milk producers who were supplying into the operations now owned by Glanbia,” he said.