Aug 19 2005
Boart Longyear has announced its intention to close its Hardrock Tools manufacturing operation in Shannon, Ireland, effective November 2005.
“The move is driven by global market forces that have seen the Hardrock Tools industry face extreme pressure over the past decade. It is caught between no meaningful price increases and steadily increasing labour and raw material inputs,” explains Boart Longyear president and CEO Paul Brunner.
“Sadly, the numbers speak for themselves. To remain competitive, Boart Longyear must maximize efficiencies by moving from a regional to a global structure and harnessing the synergies that exist within the group.
“This means consolidating our manufacturing plants so we can single-source products from global Centres of Excellence and, as part of this process, the Shannon business will be transferred to Boart Longyear’s factories in Wuxi, China and Mississauga, Canada.”
Operating since 1960 the Shannon manufacturing facility has played an important role in contributing to Shannon’s industrial development through employment, resources and technology, says Brunner. “The group would like to acknowledge the efforts of all its employees who contributed to its success over many years. However, the group must respond to the long term interests of all its stakeholders and it is with deep regret that this decision has been necessary.” He stresses that the major review of the group’s Hardrock Tools business that led to this decision was initiated several years ago. Boart Longyear’s new owners, Advent International, fully endorse the proposed plan of action.
Although the Hardrock Tools plant, employing 55 people, will cease to operate, Boart Longyear will not be severing its ties with Shannon, Ireland. Its Diamond Division and Hardrock Tools sales team, which total 13 employees, will continue to operate from new premises in the area.
Customers are assured that the local Irish sales team, supported by Boart Longyear’s regional headquarters in the Netherlands, will continue to offer value and service excellence,” says Regional Director – Europe, Holm Oostveen.
“Boart Longyear assures all stakeholders affected by the intended closure of its Hardrock Tools manufacturing operation that it will meet all its obligations in a fair and reasonable manner.” The Company will be meeting with Union representatives shortly to give the background on the closure and to discuss severance terms.
http://www.boartlongyear.com/