A long-established electronics plant in Co Meath today confirmed it is to close with the loss of over 350 jobs.
NEC Semiconductors, which is based in the small village of Ballivor, is to relocate to Malaysia to avail of cheaper labour costs.
News of the closure leaked out this morning and following a meeting between management and staff, the rumours were confirmed. All 300 full-time and 50 part-time jobs will be lost this September.
Hideto Goto, executive vice president in charge of manufacturing at the parent company NEC Electronics, noted that the international semiconductor market was extremely competitive.
"The decision to close the Ballivor plant was a very difficult one, but after considerable analysis, we concluded that we could not justify the high cost of keeping it open," he said.
Siptu branch secretary John Regan said negotiations on a severance package would begin shortly.
"We cannot compete in the race to the bottom when it comes to pay and conditions of employment," Mr Regan said. "Although the company had been trading badly in recent times it had returned to profitability. And with very few prospects of alternative employment for the NEC workers, the loss of so many jobs will have a very damaging effect on the local economy."
Minister for Enterprise, Trade and Employment Micheál Martin said FÁS would begin an immediate assessment of skills and arrange retraining needed. "I wish to assure all concerned that the State agencies will provide every support they can. The priority will be to find alternative employment for those involved," he said.
Minister for Natural Resources and Meath TD Noel Dempsey vowed that alternative jobs must be found for the workers in Meath rather than force them to commute to Dublin.
"The priority has to be the workers in terms of retraining and upskilling," he said. "We have to try to ensure that there are more jobs available for them in Co Meath."
Local Fine Gael TD Damien English said the failure of Government to take initiatives to bring jobs to the area meant the closure would have severe effects on the local economy.
"This is just the latest example of the Government's neglect of the county, which is rapidly turning into a commuter wasteland.
"The job creation record in Meath is appalling, and the county has been losing up to 50 IDA-supported jobs every year. There is now an overwhelming case for specific tax incentives to be provided in the county in order to attract new business and support small companies," Mr English said.
Labour TD for Westmeath Willie Penrose called for targeted jobs action for the area. "This plant has been in operation for over three decades, and these job losses will be felt all across Meath and Westmeath," he said. "State job creation agencies should be instructed to give priority to this area immediately."
Managing director Kenji Yamashiro of NEC Semiconductors Ireland said: "We are very proud of the quality of the work and the legacy, and appreciate the efforts of everyone at the Ballivor plant," he said. "Our immediate concern is the welfare of our employees, and we will do everything we can to make this transition as easy as possible for them.
"We would like to thank the Irish Government and IDA Ireland for their strong support throughout our 30-year history."