The expected closure of the 3Com plant in Blanchardstown, Dublin, became a reality yesterday when the company that makes network equipment announced it would be outsourcing its manufacturing operations, with a loss of 640 jobs.
A 3Com spokesman said manufacturing would be transferred to China and Mexico. The company said the decision to close was part of its drive to improve efficiency and reduce costs.
The Tánaiste, Ms Harney, expressed disappointment at the news. "It will be particularly regretful to this hard-working and dedicated workforce that, despite outperforming all contract manufacturing options available, the company has chosen to relocate and outsource their operations elsewhere."
3Com has been manufacturing voice and data network products in Ireland since 1991. At its peak, it employed over 1,000 people in its Blanchardstown facility and was the company's European hub.
3Com workers were told of the closure yesterday morning, in an hour-long presentation, at two meetings.
One employee told The Irish Times that the closure had been anticipated for some time, but expressed disappointment at the way the news had come out in media reports last week - before the workers knew anything.
He said that although the company was saying the factory would close next February, manufacturing was likely to cease before the end of the year. He added that, in general, most of the workers seemed happy with the redundancy terms on offer. "A lot of people were content with the packages, which took the sting out of it," he said. 3Com will pay each employee six weeks' pay for each year of service. This is on top of the two weeks' statutory redundancy payment.
A source told The Irish Times that 3Com would retain about 35 employees in Ireland for research and development, and marketing and sales. The current premises will be sold when the factory is closed next February and the company will seek new premises for its reduced operation, probably in the Blanchardstown area.