Gateway reveals plans to shut Irish plant

Computer manufacturer Gateway is set to close its Irish operations, with the loss of more than 900 jobs.

The US firm, which laid off more than 200 workers earlier this year, suffered losses of €10.3m during the second quarter of this year because of a 46% slump in sales.

The move will come as a major blow to the Irish high-tech sector, which currently employs around 72,000 people.

The coalition Government has been pushing Ireland as a hub for the some of the world's biggest high-tech firms, but all these firms have experienced falling profits due to the downturn in the global economy and a massive drop in demand for personal computers.

Just last month, Gateway announced that it was reviewing its global operations to try to offset the fall in profits. The company had established its European base in Clonshaugh, Co Dublin, but was forced to reconsider that decision because of the global economic downturn.

No final decision has been taken regarding the closure of the Dublin plant, but even if Gateway stays in Ireland, widespread job cuts are expected.

Responding to today's news, Tanaiste Mary Harney said she has instructed the IDA and FAS to work closely with the company to ensure that everything possible is done to find alternative employment for anyone affected by the move.

"There remains a strong labour market, despite the recent downturn in the US technology sector," Ms Harney said. "I would be hopeful that, with the help of the relevant state agencies, alternative employment opportunities can be made available to all those involved."