Around 140 jobs are to be eliminated at the KOSTAL Abbeyfeale plant in Ireland as the company shifts production to China. The announcement, made during a meeting between staff and management on , marks a significant blow to the Listowel and north Kerry region, where a substantial portion of the workforce resides.
Two company directors traveled from Germany to Kerry ahead of the meeting to deliver the news. The redundancies consist of 95 operator roles and 45 non-operator positions. KOSTAL plans to cease onboard charger (OBC) production at its Abbeyfeale facility sometime in the fourth quarter of .
Management communicated the decision to employees via a WhatsApp message, describing it as “both significant and disappointing” for the Abbeyfeale workforce. However, the message explicitly stated that the closure is not a reflection of the performance or dedication of the employees at KOSTAL Ireland.
The company attributes the decision to a combination of factors, primarily the availability of excess production capacity in China and the approaching end-of-life of the OBC products currently manufactured in Ireland, with no successor products planned for the Irish facility. Alignment with the company’s global strategic direction for power electronics production was also cited as a key driver.
As of , approximately 360 people remain employed at the Abbeyfeale plant. Importantly, KOSTAL’s facility in Mallow, which focuses on a different line of automotive products, will not be affected by this restructuring of OBC production.
This announcement follows a previous indication of potential workforce reductions. In October , KOSTAL initially announced plans to reduce its workforce by 60 positions after issuing a letter outlining the proposed changes. This initial reduction figure has now been significantly surpassed.
According to a statement from the German-based company, the board’s decision was not made hastily. KOSTAL has been experiencing challenges due to lower sales volumes of carlines utilizing its OBCs. The company did not provide specific sales figures or projections.
The move reflects a broader trend of companies reassessing their manufacturing footprints in response to shifting global economic conditions and the increasing competitiveness of production in China. While KOSTAL emphasized that the Abbeyfeale closure is not a performance-related issue, the decision underscores the pressures faced by manufacturers in maintaining cost-effectiveness and adapting to evolving market demands.
The impact of these 140 job losses will be keenly felt in the local economy. The Abbeyfeale plant has been a significant employer in the region for a considerable period, and the redundancies will undoubtedly create hardship for affected workers and their families. The long-term economic consequences for the surrounding communities remain to be seen.