Tánaiste Mary Harney expressed regret at the announcement today (Friday 5th February, 1999) that Schiesser A.G. are to close their plant in Clonmel on 2 April, 1999 with the loss of 135 jobs. Schiesser has been in Ireland for 33 years and is undertaking a major rationalisation of its industrial operations across Europe including Ireland.

The Tánaiste said "This is a further significant blow on the industrial front for Clonmel. However, I am confident that the agencies can meet the demand for additional industrial employment in Clonmel. The people of Clonmel have shown in the past that, with the support of the agencies, a successful outcome to a difficult closure can be effected."

The Tánaiste has asked that FAS move immediately to meet management and employees to undertake detailed skills profiles and plan training to enhance the employees prospects for re-employment.

The company indicated that increased competition and intensified price pressure in the market has lead to a downturn in trade for the Schiesser Group and a need for the company to reduce capacity. In response to these pressures the company are moving production to Eastern Europe. By the end of spring 1999, over 1,000 production jobs will be lost at a number of Schiesser operations in Germany with further job losses expected in other facilities in Western and Southern Europe. The IDA and Enterprise Ireland continue to work vigorously to attract industry to the region. The establishment of Guidant in Clonmel which is to create over 500 jobs and also the expansion of Clonmel Healthcare which is to create 200 new jobs, will have a positive impact on employment in the South Tipperary area as a whole over the coming years. In addition, Enterprise Ireland has approved £100,000 grant assistance towards a new Enterprise Centre in Clonmel. This Centre is comprised of 7 units, 3 of which are currently under negotiation for a project to employ 30 people.

The Tánaiste said she "expected that the company would provide a fair and adequate severance package for the Scheisser workers"