Fruit of the Loom to invest in the North West

Fruit of the Loom has announced investment plans for its operations in Ireland.

The first stage of the investment programme will see the company, which employs 830 people in Londonderry (Campsie) and Buncrana (Shore Rd and Ballymacarry), consolidate its Republic of Ireland operations in its purpose-built Ballymacarry site.

However, this consolidation will see around 65 jobs lost over the next twelve months.

Announcing the measures, Joe Mullan, Senior Vice-President Manufacturing, Europe said: "Over recent years our European manufacturing base has undergone significant change. However, we have a compelling need to continue to reduce costs in order to secure our long-term competitiveness.

“We believe that our strategy of coupling well- invested textile processing in the North West of Ireland with cost effective garment assembly in Morocco will position us to successfully meet the challenges facing our business. As the market and retail sector continues to change, the US management team has recognised the potential growth opportunities offered by Fruit of the Loom Europe and this belief is endorsed through today's announcement.''

Highlighting the potential for the Ballymacarry plant, he added: "The site at Shore Road is much older with many constraints to future development. Consolidating our Buncrana operations at the Ballymacarry site will enable us to attain a more effective manufacturing operation.

“By focusing on a single site facility, we will be able to utilise new technologies, implement improved systems, and enhance our employees' skill levels through training and development. This will ultimately help us maintain a viable textile operation in Ireland."

Operations in the Shore Road site will begin to transfer to Ballymacarry in early 2002.

The Company will also consult and work closely with employees and SIPTU representatives to ensure a smooth transition and successful implementation. (MB)