AMERICAN Power Conversions is expected to decide by the end of November on the future of its proposed £40 million investment in Ireland which is expected to create 1,000 jobs.
In November, 1995, the US computer company announced a major expansion of its operations in Ireland. APC was to create 1,000 jobs through the purchase of three plants in Gillogue, Co Clare, Drogheda and Castlebar in a £40 million investment and the expansion of its operation in Galway where 500 people are employed.
The Castlebar plant was expected to come on stream in July, followed by Drogheda and Gillogue.
The Rhode Island based company was "still in negotiation with the IDA, an APC spokeswoman said yesterday. The company was still pressing ahead with plans to establish production lines in the factories in Castlebar Gillogue and Drogheda, she said.
"We still plan to go forward at this time," the spokeswoman said. It is understood the company met IDA officials in Pittsburgh last week.
IDA western regional manager Mr Tom Hyland said that APC raised queries about the suitability of the Gillogue plant, which was formerly occupied by Burlington. He said "technical difficulties" relating to the site and buildings at Gillogue had been examined and a report had been sent to APC.
A SIPTU official in Castlebar, Mr Noel Kilfeather, said there was "tremendous concern and quite a lot of frustration" in the town at the delay in proceeding with the project.
The delay in finalising it appears to have arisen because the company expressed reservations about the Gillogue plant and site on environmental grounds. Lawyers for international companies are increasingly reluctant to allow their clients 46 take over plants which could involve them becoming liable for environmental damage. The IDA commissioned a technical examination of the plant and site which took 10 weeks and was sent to APC at the end of August.
Because the investment is a single deal for three plants - the plants are not being sold individually - the concerns about the Gillogue plant have delayed the legal completion. APC's lawyers are now analysing the technical report in order to advise APC on whether to proceed with the deal.
Last night Fianna Fail spokeswoman on Enterprise and Employment Ms Mary O'Rourke called for an urgent review of industrial policy. She criticised "the focus and glitz" that go into announcements of new jobs. "Realism must apply, sometimes announcements of new jobs are just that - announcements", she said.
