Fears of job cuts at large motorcar parts factory in Limerick

THERE are fears that jobs could be lost in Abbeyfeale, with Kostal planing to transfer production of one of its devices to China.

Kostal, which exists to develop products for the motor car industry across the world, employs 420 people in the west Limerick town.

But now, it's understood that staff have been contacted and told that a number of positions are at risk as a result of the company's decision to transfer on-board charger production from Abbeyfeale to China.

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Siptu, the union which represents the majority of staff in Kostal, have requested a meeting with management over any potential redundancies.

Sinn Fein Senator Joanna Collins said any job losses will have "a devastating impact on families and small businesses across Limerick and Kerry."

"Kostal is a crucial business for the footfall of Abbeyfeale and the wider region. Every job lost here will be felt in our shops, schools, sports clubs, and communities. This is not just about a factory , it’s about the survival of small towns in Limerick that depend on these wages to keep local economies alive," she said.

She has called for urgent government action: “The Minister for Enterprise and IDA Ireland must immediately engage with Kostal to safeguard as many jobs as possible. Workers and their families cannot be left in limbo while decisions about their livelihoods are made in boardrooms abroad.”

“We need a plan now, not when the redundancies arrive. Unless action is taken, Abbeyfeale and surrounding small towns across Limerick and Kerry will suffer irreparable damage.”

A spokesperson for the company, confirmed to Limerick Live, that "Kostal is constantly reviewing its operational efficiencies and competitive position in the 21 countries in which it operates. We regularly engage with our employees on those findings".

"Kostal has recently completed a review of business viability at its Abbeyfeale site in Co Limerick. As part of this process, the company has decided to transfer production of its On Board Charger (OBC) products — units that allow electric cars to charge from the electricity grid. Other business activities will continue at the Abbeyfeale site. The business review was relevant to the Abbeyfeale site only and does not impact Kostal’s operations in Mallow, Co Cork."

The statement adds that "A planning team is being established to transfer OBC production activities from Abbeyfeale, and discussions with customers are a key part of the transfer process. As part of this business re-organisation at Abbeyfeale, Kostal will keep all employees and their representatives regularly informed once further details become available." 

"Kostal has been present in Ireland since 1981 and remains committed to acting in a fair, balanced and constructive way as we navigate the current challenges facing the automotive industry," concludes the statement.