Element Six is to cut 370 jobs at its plant in Shannon, Co. Clare. The announcement was made this morning at a meeting with workers. The company blamed the high-cost environment in Ireland, which it said could no longer be sustained. It is one of the oldest companies in Shannon and was formerly known as DeBeers, a unit of the South African diamonds group.
All manufacturing and distribution is to be discontinued with only 80 workers being retained in the research and development area.
Element Six said the Shannon operation, which operated a central marketing and technical support unit, was the most expensive manufacturing unit in the entire global operation.
"Despite a series of cost reduction programmes in the past few years, continued production at the Shannon site is no longer sustainable or viable, and the primary business it serves is loss-making,"the company said in a statement.
'The current economic downturn has simply served to exacerbate these challenges.
'This is a highly regrettable decision for Element Six and a number of alternatives were considered at length.
"Management will commence the process of winding down the manufacturing and distribution operations to effect closure by around year end,"Element Six said.
Last December, the company announced 150 voluntary redundancies.
The company is one of the world's biggest manufacturers of supermaterials and industrial diamonds.
It also has plants in South Africa, Sweden, Germany and Israel.
IBEC, the Irish business lobby group, today said that the loss of the jobs at Element Six in Shannon was a major blow to the Mid- West region, and in particular to all the employees and their families.
IBEC Mid-West Regional Director Chris O’Donovan said: “Today’s news underpins how important it is for Ireland to get back to trading internationally at competitive prices. This closure shows the consequences for jobs in Ireland if we do not bring business costs down and into line with competing economies.
"The Mid-West Taskforce was established by the government following the devastating news of the downsizing of Dell and the subsequent job losses in supplier and related companies. The interim report of this group is now with the Cabinet, we now need to see this report published and its recommendations acted upon."
