Glanbia Meats Expansion
25 Junio 2003 - 10:30AM
UK Regulatory
RNS Number:7649M
Glanbia PLC
25 June 2003
Glanbia Meats to expand operations in Edenderry and Roscrea
- rebuild of Roosky not to proceed
In May 2002 a major fire destroyed a Glanbia Meats Ireland pigmeat processing
facility in Roosky, Co. Roscommon. After lengthy and comprehensive consideration
of its options, the company today announced that it plans to restore the
capacity lost in the fire by upgrading and expanding its remaining two
facilities in Edenderry, Co. Offaly and Roscrea, Co. Tipperary at an estimated
cost in the region of Euro27 million.
Upon completion, the upgraded facilities will have a combined capacity to
process 25,000 pigs per week, making them the largest and most efficient
facilities of their kind in the Irish Republic. The planned works include
extensions to slaughter, chill and boning facilities, together with appropriate
infrastructural improvements. Work will be completed in phases with the entire
project finished by September 2004. Overall, the expanded processing activities
will have an increase in employment at the two sites of approximately 150.
Glanbia Meats remains committed to its cannery facility in Roosky, which employs
95 staff.
Subsequent to the fire in Roosky, it was Glanbia's intention to rebuild the
destroyed plant. However, despite extensive exploration of options, it proved to
be un-economic to do so. The restoration of lost capacity within existing
facilities is a better long-term solution for the company and producers, due to
the economies of scale that will arise, in the face of the intensely competitive
markets that the company serves.
A voluntary redundancy programme was agreed between the company and employees
representatives for staff affected by the fire in Roosky and this has seen
significant uptake by employees in processing activities. This package has been
extended to include other administrative and support positions which have been
impacted by the fire and by the decision not to rebuild in Roosky. It is
expected that, net of the 150 new jobs created in Edenderry and Roscrea, the
reduction in employment in the company arising from the fire will be
approximately 190.
Commenting on the decision, John Madden, Chief Executive of Glanbia Meats
Ireland, said, "The Roosky fire was devastating for everybody involved and we
were determined to rebuild the facility. Regrettably that has not been a viable
option despite the extensive investigations made by the company. I am confident
the solution we have arrived at offers the best long-term job security for our
remaining employees, and for our producers. I want to thank our staff at Roosky
who gave such loyal service to the company over many years and to assure them
that this decision was not taken lightly."
Glanbia Meats Ireland is a subsidiary of Glanbia plc. It is Ireland's largest
pigmeat processor, serving domestic and international markets.
ENDS
25 June 2003
Issued by: Corporate Communications, Glanbia plc
Contact: Michael Patten, Group Director of Communications
Tel: 056-72357 / 087-2414502
This information is provided by RNS
The company news service from the London Stock Exchange
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