THE Government has asked the IDA to seek fresh foreign investment to overcome the loss of almost 900 jobs in two foreign owned companies here which are to close.
The German rubber industry giant Continental AG is to close its Semperit tyre plant at Ballyfermot in Dublin with the loss of 650 jobs and US owned Tambrands Ireland is to close its Tipperary plant, making 220 workers redundant.
Government sources said last night they were optimistic that a buyer could be found for the Ballyfermot factory. The IDA has set up meetings next week with a US company and 15 other potential buyers have contacted the authority.
The West Tipperary Enterprise Group held a meeting last night to formulate a development plan to counteract the effects of the Tambrands closure. It called on the Minister for Enterprise and Employment, Mr Richard Bruton, to put a package in place for the town.
Yesterday morning Mr Bruton led a delegation, including the chief executive of the IDA Mr Kieran McGowan, and the secretary of his Department, Mr Kevin Bonner, to Frankfurt to meet the Continental AG board. Mr Bruton had a 90 minute meeting with Dr von Grunberg, the executive chairman of Continental.
"The Minister, in the most forceful manner, put forward the case for retaining production in Ireland with a view to maximising the number of jobs at the plant, prior to Continental making its final decision on the future of the Ballyfermot operation," according to a Department statement.
The indications from Dr von Grunberg were described as "not promising".
Mr Bruton was given assurances that there would be a phased wind down in the event of closure.
Details of the Semperit closure were given to the workforce at a meeting in the plant at 8 p.m. by Mr Jack Golden, managing director of Semperit (Ireland). Afterwards, Mr Golden said the Irish plant "does not match the ideal profile of the group's manufacturing unit of the future". This was no reflection on the Irish workforce, he stressed.
"Semperit Ireland Ltd is one of the smallest car tyre plants in the Continental group, with what could be described as a medium cost level." He said that labour costs in Ireland were 10 times higher than those in Central European countries like Slovakia and is not close to any major auto manufacturers.
The Irish plant has a payroll of £20 million a year and the company has put forward a redundancy package worth about £15 million. It said the average payment to employees would be £24,000, but about 80 people with long service would obtain considerably more.
Mr Jimmy Somers, the vice president of SIPTU, said "urgent meetings with Mr Bruton and the co operation of the IDA in finding a buyer" will be sought.
Continental also owns Advance Tyres in Ireland. Mr Golden said this was a "stand alone" operation and its future would not be affected by the decision to close.
The Fianna Fail leader, Mr Bertie Ahern, described the announcement as a major blow to Ballyfermot and to Dublin. He called on the Government to establish a task force for Ballyfermot.
The Progressive Democrats leader, Ms Mary Harney, said that Semperit's closure would be a disaster for the region, coming so soon after Packard's closure earlier this year.
