Molex has announced it will be closing its Shannon facility by the end of 2020, subject to an employee consultation process resulting in the loss of 500 jobs.
This closure will take place in a series of phases, the first beginning in early 2020. The news follows a review of the product lines manufactured at the Shannon facility which has been in operation since 1971.
In a statement to The Clare Echo, a spokesperson for the US multinational outlined, “As a leading supplier to the dynamic global electronics marketplace, Molex continually evaluates market demand and adjusts our operations to align our resources with that demand. Having a market competitive cost structure is critical for building a sustainable business”.
500 employees are to be impacted by the decision. “The majority of products made at the Shannon facility have insufficient financial returns and growth potential. Therefore, these products will either be exited or divested, with any remaining products transferred to other Molex facilities. The impact of this decision will regrettably result in the closure of the facility impacting up to 500 employees.
“Announcing our intention to close this facility is very difficult due to its impact on our employees, and the deep ties Molex has with the region and its people having operated in Shannon since 1971. The decision in no way reflects on our Shannon employees, who have made an invaluable contribution to our business over many years.We are now focusing our efforts on engaging with our employees following this difficult announcement and that includes a comprehensive programme of supports to help them with the transition ahead”.