Staff at the Coty plant situated in Nenagh, County Tipperary have been called to a meeting at midday today, fueling fears for the future of over 200 jobs.
Following a briefing after a Tipperary County Council monthly meeting yesterday, members were informed to expect the worst scenario.
In 2015 the Coty cosmetics manufacturing company, which boasts revenues of over €9 billion and is one of the biggest beauty companies in the world, took over the Proctor and Gamble facility, which had been in operation, since 1978, at the Gortlandroe Industrial Estate, situated in Nenagh.
The take over deal worth €11.3 billion, saw Coty acquire the brands Hugo Boss, Gucci and Max Factor, also hair and fragrance brands such as Calvin Klein, Clairol, Wella, and Rimmel are all part of its product range.
There were a number of concerns then about the takeover last year, including pension rights and last year the Labour Court recommended that the staff receive a once off loyalty payment.
Today’s midday meeting is likely to announce that all production at the plant in Nenagh will cease over an 18 months period, with all jobs moving from the area to the UK.
Worst scenario; staff at the Nenagh plant will receive redundancy payments under the terms previously available from Procter & Gamble, which amounts to six weeks pay per each year of service, plus two weeks statutory redundancy.
Coty this afternoon have confirmed that its plant, situated in Nenagh, Co Tipperary, will close by the end of 2018 with the loss of around 200 jobs.
The company confirmed it had carried out a detailed study of its global manufacturing and had decided to consolidate its total cosmetics operations, resulting in the complete closure of their Nenagh plant.
This decision came about following the merger of the Proctor & Gamble Speciality Beauty brands with Coty, and is reminiscent of so many other company mergers and take overs in recent years in Tipperary towns like Nenagh, Clonmel and Thurles.
The plant had been one of the biggest employers in Tipperary, with a workforce of over 500 persons since 1970.