"The shock news of the impending closure of Krups, with a loss of 500 jobs, is like a bereavement in the family, for the company has been for over 30 years synonymous with the fabric of Limerick life," said Mr Pat Kearney, president of the Limerick Chamber of Commerce, on hearing the news yesterday.
Most of the production jobs in the former German company, which was taken over in 1991 by the French firm, Moulinex, would be gone in two months and "lights out" next June.
"The fact that nearly all these jobs will be gone prior to Christmas is a devastating blow to the local economy and for the families of the workers. Many of the workforce will not get further employment because of their age profile," he said.
Mr Liam McElligott, who has been head of the Irish operation since l997, said that including a payroll of £10 million the company puts £15 million annually into the local economy.
When Krups came to Limerick from Solingen in 1964, he said, it was the first multinational initiative in the mid-west.
Mr Desmond Fitzgerald, systems accountant, who has been with the company for 22 years, said: "At that time it was family-owned by the Krups and it operated like a family. I am not criticising Moulinex, but they are a corporate operation."
In 1982 it reached a peak of 1,300 workers and was the biggest employer in the region.
Mr Mike Long, SIPTU branch secretary, Limerick, said he was satisfied with the action of local management, who at all times kept the union informed of the difficulties. "The workers did not expect closure. What they did expect was possible short-time working.
"Unfortunately we learn that this is a group decision and I do not think that any of the workers bear any resentment against local management. We do not know just yet what devastation will be caused by such a closure." Mr McElligott said that after a detailed review of Moulinex's global operations, the Irish plant came into doubt. The group had cut catastrophic losses in its overall global market due mainly to the Russian and Far Eastern crises. The losses amounted to 700 million francs (£84 million) on a turnover of 7.8 billion francs (£935 million) in 1995. The recovery plan cost 2,600 jobs in France and 500 in Germany, but had left Ireland unscathed until now. Severe short-time working in France is a further measure imposed.
Mr McElligott said that with the new EU legislation, it was now obliged to present these measures to the European works council by Friday. Intense efforts in recent weeks, he added, had secured the future of the GMX facilities in Thurles, which had a workforce of 250 and would now become the centre of production operations for Moulinex in Ireland.
Mr McElligott paid tribute to the Limerick workforce. He said industrial relations had been excellent and the co-operation of all was superb. The news of the impending closure yesterday morning had been taken "with extraordinary dignity".
Ms Mary McMahon, of Corofin, Co Clare, who has been working in the accounts department for 32 years, said that dignity was no doubt due to the shock with which the news was received. "Krups was here so long that we expected it to continue for ever."
Mr Fitzgerald added that two years ago the staff had accepted a wage freeze and later a 1 per cent increase when the statutory figure should have been higher.
The company produces domestic kitchen appliances such as hand-mixers, slicers, blenders, weighing scales and electric kettles.
The Tanaiste, Ms Harney, yesterday expressed "extreme regret" at the news of the impending closure. She said she had ordered an immediate response to the company's announcement with the establishment of an inter-agency response group chaired by IDA Ireland.
Ms Harney will visit the plant on Monday and meet management and representatives of the workforce and will then address the first formal meeting of the response group.
Employment in the Limerick region had been extremely buoyant over the past five years. In September 1993 there were 13,708 on the live register compared with 8,927 last month, a drop of 34 per cent.
Shannon Development in its recent annual statement said that more than 5,000 net new jobs had been created in industry, tourism and services in the Shannon region last year. This combined with 3,000 jobs approved during the year put the region well on track to generate 23,000 jobs by the end of 2000, a target which had been set three years ago.
The Fine Gael leader, Mr John Bruton, who is in Buncrana, Co Donegal, expressed alarm at the announcement of the job losses at Krups.
He urged the Government to bring forward a new strategy for employment which would not be so highly vulnerable to global economic forces.