Processing Magazine

Procter & Gamble to cut jobs in Ireland

March 7, 2007

Procter & Gamble Co. said it is cutting more than half of the work force at its cosmetics plant in Ireland and is shifting some of its operations to Poland over the next two years, the Associated Press reports. The plant in Nenagh, County Tipperary, will continue operating with some 220 employees, down from about 500 now, company spokesman Doug Shelton said. He said the company is moving the plant''s skin-care production to Poland for strategic reasons including its proximity to the important emerging markets in eastern Europe. He said some employees will have the opportunity to transfer, while others will be offered separation packages. The reduction will be phased over a two-year period, Shelton said. The Irish government, which in 1999 provided a $34 million (euro26 million) grant package to help P&G''s Nenagh plant expand, had said earlier it feared that the operation was facing closure.Workers at the Nenagh plant have feared for their jobs since January, when P&G executives said they were considering closing one of their European manufacturing facilities. Those anxieties increased in mid-February after reports that the company was planning to open a new cosmetics factory in Aleksandrow Lodzki, Poland, in 2008. The Nenagh plant, opened in 1985, is the biggest employer in the town. It makes products for the Max Factor and Cover Girl makeup ranges, Oil of Olay skin products, and perfumes for the Hugo Boss and Laura Biagiotti brands. Oil of Olay production will move to Poland, P&G said.