150 jobs to go at Castlemahon food plant

Around 150 jobs are to be lost at a Limerick poultry processing plant, it emerged today.

Castlemahon Food Products confirmed a major restructuring plan was being put in place to protect a further 260 employees at the factory.

A company spokesman blamed intense market competition and escalating operating costs for the losses.

He said the planned changes were designed to reshape and re-focus the business at Castlemahon to ensure it was cost competitive and save hundreds of jobs.

Castlemahon Food Products produces a wide range of poultry foods and employs 410 people.

The spokesman said the group would transfer some aspects of production to its Ballymena plant.

Castlemahon Food Products is owned by the O’Kane Poultry group in Northern Ireland.

Pat Mulvehill, Castlemahon Foods managing director, said: “The proposed restructuring is essential to secure the continued operation of Castlemahon. The reorganised business will provide a solid platform for the planned future growth and development”.

“Castlemahon wish to acknowledge the contribution of all our employees over many years and this restructured facility will continue to be an important location for the O’Kane Group.”

The firm tirned over profits of more than €70m in 2003.

The company said a new group-wide integrated approach will allow optimum use of resources and facilities to achieve the targeted cost reduction.

Investment has already been made in IT and telecommunication systems, providing the necessary infrastructure to support the drive for the growth and development of the business.