Management at the industrial diamond firm Element Six  in Shannon, have got agreement from its parent company for a survival plan, which could save an additional 160 jobs at the facility.

The company announced last month that it was to end manufacturing in Shannon, with the loss of 370 jobs. 80 jobs would be retained.

The company had said the long-established plant had become uncompetitive.

The survival plan was approved by the Geneva-based parent company yesterday and was put to employees at a meeting this morning.

As part of the plan the company has agreed that the sum available for redundancies will be increased from €6.5m to €8m.

This would improve the proposed redundancy pay-out from one week's pay for every week of service to two and a half weeks plus the statutory redundancy of two weeks.

Ken Sullivan, general manager of the company, said the new sustainability plan would require a comprehensive overhaul of work practices and a strong productivity drive.

Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, T.D., today welcomed confirmation from Element Six that it has accepted a restructuring plan proposed by local management, with the support of the Government through Shannon Development, that could save an additional 160 jobs at its Shannon-based manufacturing facility.

The proposal, which would bring to 240 the number of jobs to be retained by Element Six in Shannon, will involve significant restructuring and adjustment to the cost base at the facility.

In welcoming the plan, the Tánaiste said that its implementation would not be without challenges for management and workers at the facility, but that aintenance of the greatest possible number of jobs that are secure and sustainable in the long-term must be the priority.

Shannon Development said it welcomes today’s announcement from Element Six. The agency said Element Six is a key employer in the Shannon Free Zone and the acceptance by Element Six Executive of the Shannon Sustainability Plan represents a significant improvement to the alternative of winding down operations as announced on July 22nd.