More than 100 jobs are to be lost in Donegal following the surprise announcement of a rationalisation at Ruibear Motair Teoranta in Gweedore. The German-owned factory, which manufactures parts for the automotive sector, will reduce its workforce from 217 to 114 over the next eight months. According to a statement, 67 people are to made redundant by the end of March, with the balance of job losses by end September. A further 20 part-time jobs will also be lost.
Competition from eastern Europe is believed to have caused increasing difficulties for the factory. It is currently loss-making, a situation which cannot be allowed to continue, according to a company statement.
However the statement says that it is hoped to return to profitability by the end of 1998 as a result of the restructuring programme. The company is committed to doing everything possible to secure the remaining jobs and is seeking to develop strategic partnerships, it said.
Last month, 50 jobs were lost at the nearby Europlast factory, which manufactured plastic bags.
Ruibear Motair Teo, regarded as a flagship project in west Donegal, was opened in 1991 by the then Taoiseach, Mr Charles Haughey. Udaras na Gaeltachta has provided over £5 million in grants to the German-owned company.
The Fine Gael TD for Donegal South West, Mr Dinny McGinley, has called for the establishment of a special jobs task force following the announcement of the layoffs at Ruibear Motair Teoranta. Deputy McGinley said that a taskforce is now needed to stop the region "from going into an economic tailspin".
