The corrugated packaging manufacturer yesterday began a consultation with staff at its Togher plant in Cork that employs some 170 staff.
Smurfit Kappa said there had been a significant loss in volume and a 50% drop in order books because of the major downturn in Irish manufacturing, that left no choice but to restructure operations.
“A significant manufacturing presence is being retained to service a range of local customers throughout the Munster region,” the Dublin-headquartered firm said in media statement.
The changes will come into effect once the negotiations with staff and their representatives have been completed.
Paul Depuis, organiser of trade union Siptu, said the main priority was to work to save as many jobs as possible and secure decent severance packages for staff, some of whom had been at the facility since it opened in 1974.
“The fact that the facility is to remain open offers an opportunity that jobs can be created when conditions improve,” he said.
Many of the plants customers where firms requiring packaging for products such as computers where demand has fallen sharply, Depuis said.
Smurfit Kappa was unavailable for comment at the time of publication.
An initial emergency meeting between the company and staff was held yesterday (1 July) and a further meeting was due to take place today.
Smurfit Kappa revealed last week it had received consent from lenders to extend the terms of its credit agreement.
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