Business

Glen Dimplex to close two sites in Ireland, with up to 300 redundancies

The group says a reconfiguration of operations on the island of Ireland will raise overall headcount by 20% to more than 1,000

Glen Dimplex Group chief executive Fergal Leamy: he says the reorientation of operations across the island of Ireland is to ensure they are 'environmentally and economically sustainable, and a major driving force in the next chapter of growth at Glen Dimplex'. Photograph: Dara Mac Dónaill

Ellen O’Regan
Thu Feb 8 2024 - 13:38

Manufacturing group Glen Dimplex has announced plans for a major reorganisation of its operations in Ireland which will see it consolidate from five sites to three, with the potential for up to 300 redundancies in the next two years.

The group said although “there will be job losses” the €50 million investment in reconfiguring its operations in Ireland and continental Europe would result in overall employment here increasing by 20 per cent to more than 1,000 staff by 2029.

The proposals will see €40 million invested in manufacturing, R&D activity and new sales and distribution facilities on the island of Ireland, and €10 million invested in existing manufacturing capacity in Lithuania.

Glen Dimplex said its footprint on the island of Ireland would be consolidated from five sites to three “flagship hubs” as it transitions to higher-value manufacturing.

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Currently the group has manufacturing locations in Newry and Portadown in Northern Ireland, while in the Republic it has two sites in Dunleer, Co Louth, and a sales and distribution operation in Cloghran near Dublin Airport that is co-located with its head office.

It is to invest around €25 million in its Newry site to repurpose it into a centre of excellence for the manufacture of zero-carbon renewable heating solutions, including heat pumps.

Panel and storage heating manufacturing will transfer from the group’s sites in Newry and Portadown to its site in Lithuania, and the Portadown site will close most likely in 2025, with some staff redeploying to Newry.

The group is also investing €15 million in its Dunleer operations, consolidating from two sites (Barn Road and Ardee Road) to one multipurpose facility at Ardee Road, which will include a state-of-the-art showroom, a new R&D facility and ventilation manufacturing, subject to planning permission.

The manufacturing of flame products at Dunleer will be transferred to a partner in China, and investment at Dunleer will focus on growing its low carbon ventilation business.

The company plans to leave its Cloghran location, with its sales and distribution arm moving to the Ardee Road facility, and head office moving to another Dublin location with a “more sustainable footprint”.

Glen Dimplex said overall group employment in Dunleer would be “materially higher” by 2029, but that there would be some headcount reduction at the site towards the end of this year.

The transition, it said, would require “a mix of retraining, redeployment, redundancies and new hires” over the next five years. It said that subject to the outcome of a staff consultation process, up to 300 net redundancies are expected between late 2024 and 2026.

Briefing employees on Thursday, management said there would be no redundancies for at least six months.

Fergal Leamy, Glen Dimplex group chief executive, said the reorientation of operations across the island of Ireland was to ensure they were “environmentally and economically sustainable and a major driving force in the next chapter of growth”.

“By signalling these proposed changes significantly in advance of proposed implementation we aim to mitigate the impact on staff and minimise redundancies through training and redeployment, and affording the opportunity to apply for hundreds of new roles that will be created over the coming years,” he said.

Invest Northern Ireland (INI), a regional business development agency of the Northern Irish government, said it would work with the Department for the Economy and the Department for Communities to support the employees affected by the move.

“The news of Glen Dimplex’s plans to wind down its facility in Portadown over the next two years will be deeply upsetting for staff. We will work with the company and those affected to identify alternative employment opportunities, and to pursue reskilling opportunities as appropriate,” said Kieran Donoghue, INI chief executive.

The Glen Dimplex group employs more than 8,000 people globally across 20 countries and manufactures across its key sectors of heating and ventilation precision cooling, flame, and consumer appliances.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

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