IDA Ireland 'holding regular meetings' with Limerick-based firm over job cuts

IDA Ireland representatives are in regular contact with management at Kostal after it emerged jobs are under threat at its Abbeyfeale plant.

The car parts firm, which employs more than 400 people in West Limerick, is transferring the manufacture of one of its key product lines to China.

Sources have said the move might see half the workforce made redundant.

READ MORE: What renting your home during Limerick's hosting of Ryder Cup 2027 could earn you

But speaking in Seanad Eireann on Wednesday, Minister of State Noel Grealish, who was appearing in place of Enterprise Minister Peter Burke, confirmed the Government had not been formally notified of any redundancies as of 4pm on Tuesday.

It's a statutory obligation on companies to do this.

He said: "IDA Ireland is actively engaged with the company and are holding regular meetings with the leadership team [at Kostal] and are keeping the department informed."

Mr Grealish appeared in the Upper House to answer questions from Limerick-based Sinn Fein Senator and Fine Gael Senator Mike Kennelly, who is based in Kerry.

Ms Collins highlighted the steady erosion of employment in the region, citing the loss of Anderson, Irish Dresden, and Rettig in 2019, and the looming closure of Wyeth Nutrition in Askeaton next March.

“These closures have left a deep and lasting impact on families, workers, and local communities. Each time, it is ordinary people who are left to pick up the pieces,” she said.

She also drew attention to the refusal of planning permission for a new Lidl development, a project that could have delivered investment and jobs.

But her urgent concern is the situation at Kostal, adding: "I have spoken to staff who fear for their livelihoods. What matters now is what the department is doing to stop the next wave of job losses. Has the Minister engaged with management at Kostal, and what interventions are being made to protect these jobs?”

Mr Kennelly added: "These people are not just numbers on a payroll. They are the backbone of our community."

He asked if Government could intervnee before "the dreaded letter comes", advising of redundancy.

"Rather than waiting for Kostal Ireland, let's knock on their door and see what Government can do to protect their jobs and their futures, with further employment," he added.

Elsewhere, unions will hold crunch talks with management on October 9 in the hope of preserving as many jobs in the town as possible.

Siptu, the union which represents the majority of staff at the factory, held a meeting with company management in the immediate aftermath of the shock news.

Organiser Rory Hawkins said: “The Kostal Abbeyfeale plant has been in operation for more than 40 years and plays a crucial role in supporting a significant number of other businesses in the wider area.”

He confirmed there will be a further meeting between Kostal bosses and Siptu on Thursday, October 9.

A Kostal spokesperson confirmed the production of on-board chargers is going to move to China. They said other business activities will continue in Abbeyfeale, with its sister plant in Mallow unaffected.

“Kostal remains committed to acting in a fair, balanced and constructive way as we navigate the current challenges facing the automotive industry,” they concluded.