Leading Irish snack manufacturer Largo Foods is to close one of its production sites in the Republic of Ireland with the loss of 140 jobs.
Staff at the Gweedore, County Donegal plant were told of the planned closure on Friday afternoon (March 14) and that 70 of the 110 full-time and 30 part-time staff would now be offered roles at the firm’s facility in Ashbourne, County Meath.
The firm’s chief executive Maurice Hickey blamed the high price of production in Country Donegal on the closure.
“Our proposal to transfer manufacturing from Gweedore has been made necessary by the need for the company to continuously reduce costs in the very competitive snack-food market where Largo Foods trades head to head with major global brands,” Hickey said.
“85% of the output from the Gweedore plant is exported to the UK and further afield. The volume of production at this plant does not provide the scale of activity necessary to produce snack-foods in a cost effective manner. Moving production from Gweedore to Ashbourne would also enable the company to centralise activities at one site thereby improving cost competitiveness.”
Bulk of its fried snacks
Largo Foods makes the bulk of its extruded and fried savoury snacks in this factory, it added.
Hickey said the firm would now consult with employee representatives and each employee on a one to one basis about their options arising from this plan.
It currently employs 360 people in Ashbourne and Barnsley, England.
The firm has an annual turnover of €100M and a 49% share in the Irish snack food market.
Local media reports claimed the workers were shocked and panicked and the general mood at the site was bad.
The Ashbourne site manufactures potato-based products and sources nearly 30,000t of potatoes from Irish farmers each year, accounting for about 10% of the nation’s annual potato crop, the firm claimed.
Irish farmers
It sources most of these potatoes from Irish farmers in Meath, Dublin, Louth and Wexford.
Largo Foods supplies branded and own label-crisps, peanut and popcorn products to customers in Ireland, the UK, Continental Europe, Australia, Asia and the Middle East.
Its four key products are crisp brands Tayto, Hunky Dorys and King, and popcorn and nuts range Perri.
The Gweedore factory is based in the Gaeltacht area of north west Donegal and its workforce is Irish speaking, Largo said.