US industrial fibre producers DuPont announced yesterday that it was closing its neoprene plant at Maydown on the outskirts of Derry, with the loss of 218 jobs. Members of staff were given the news yesterday morning.
A company spokesman said the plant "will cease production and be mothballed in the summer".
Neoprene, a synthetic rubber used in the automotive, construction and wire and cable industries, is manufactured by DuPont Dow Elastomers, a joint venture between DuPont and the Dow Chemical Company. The facility has been in operation at Maydown since DuPont opened there in 1960.
Mr Theo Krapels, vice-president of DuPont Dow Elastomers's global operations, said the plant was closed because of a rapid decline for neoprene worldwide, but particularly in Europe.
He added: "Businesses like ours look at their strategies and their futures all the time. The European market has declined a lot. This happened in 1996 through to 1997. The decline has to do with economic cycles. Also currencies really suffered and that eroded our profitability on the business side."
Mr Krapels said there was also a global overcapacity in neoprene. "We looked at a couple of alternatives and, although some had some sense of attractiveness, they didn't create the economic value that we were looking for," he added.
"The political situation in Northern Ireland had no part in our decision-making process. We have been very happy on this site for the last 37 years and the political situation had no impact at all on our decision to close," he said.
Mr John Anderson, DuPont's site manager, said every effort would be made to reduce the number of compulsory redundancies. "Neoprene employees will be selected to fill as many vacancies as possible in our Lycra expansion and DuPont employees will be offered attractive early retirement packages to create openings," he said.
Meanwhile, Mr Uel Adair, district secretary of the AEEU, said he believed the real job losses would be more than 260. "Two hundred and eighteen are to go in the neoprene plant. Another 43 jobs will more than likely go in DuPont because of the knock-on effect.
"Also DuPont were to have created another 75 jobs in the expanded Lycra plant but they have been cancelled and they will be filled by Neoprene employees."
