Element Six to save over 240 jobs
OVER 240 jobs are to be retained by Element Six in Shannon following the successful outcome of crunch talks with local management and company executives to secure the long-term future of the facility.
Three weeks ago Element Six, which manufactures industrial diamonds, announced it would cease its operations in Shannon by the end of the year with the loss of 370 jobs. The company claimed its Shannon base was no longer competitive and that it was moving its manufacturing operations to lower cost locations overseas.
However workers were given a degree of hope when it was announced ten days ago that local management had been given seven days to come up with a rescue plan for the manufacturing facility.
Those discussions were held in London and this morning staff were told a restructuring plan had been agreed. General Manager Ken Sullivan said: "We have won support from the company to build a renewed, sustainable operation in Shannon focused on the highest value elements of manufacturing and customer service. My management team has worked extremely hard over the last week to deliver a detailed plan to convince Element Six executives, so we are delighted with the outcome."
Around 130 workers at Element Six will be made redundant but an improved €8 million redundancy package has been agreed. "It (the restructuring] will require a comprehensive overhaul of our work practices and a strong productivity drive. Importantly, Government have committed additional support in the form of training grants and temporary wage subsidies to support the Plan for which we're extremely grateful. Hopefully all parties can now work closely together to agree and implement the Plan quickly over the next few weeks to avoid the wind-down scenario," added Ken Sullivan.
Cyrus Jilla, CEO of Element Six said "I'm delighted the local management team have come forward with a truly sustainable plan for Shannon which will retain more than 240 jobs on site. We recognise the excellent capabilities we have in Shannon, but we were only prepared to retain operations if they could be competitive and sustainable for the long-term. This plan achieves that goal and I look forward to working with the entire Shannon management team to secure quick support for this Plan."
Consultations with staff regarding the restructuring plan will begin next week.
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Tuesday 22 May 2012
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