500 jobs hit as Shannon firm announces closure

Nick Rabbitts

Reporter:

Nick Rabbitts

Email:

nick@limerickleader.ie

BREAKING: 500 jobs hit as Shannon firm announces closure

Molex is ceasing operations in the Shannon Free Zone

ELECTRONIC components manufacturer Molex has announced the closure of its facility in Shannon, in a move which will impact at least 500 people.

In what is the single biggest loss of jobs locally since Dell shed 1,900 staff in 2009, Molex has confirmed the news this afternoon.

It’s understood that while 400 people work at the US multi-national firm, based in the Shannon Free Zone, there are multiples more dependent on the site for an income.

Molex makes a range of electronic components for use in a variety of industries, including data communications, consumer electronics, industrial, automotive, commercial vehicle and medical.

In a statement, the company says it has come to the decision after a revirw of its product lines.

The closure, which is subject to an employee consultation process, is expected to take place in a series of phases starting in early 2020. It’s anticipated the facility will close completely by the end of next year.

The firm added the majority of products made at the Shannon facility have insufficient financial returns and growth potential.

Therefore, these products will either be exited or divested, with any remaining products transferred to other Molex facilities.

"Announcing our intention to close this facility is very difficult due to its impact on our employees, and the deep ties Molex has with the region and its people having operated in Shannon since 1971. The decision in no way reflects on our Shannon employees, who have made an invaluable contribution to our business over many years,” the company said.

“We are now focusing our efforts on engaging with our employees following this difficult announcement and that includes a comprehensive programme of supports to help them with the transition ahead.”

Molex opened in Shannon in 1971, and there were fears for job losses from this lunchtime, as staff were called into meetings with management.