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P&G confirm job losses following plant restructuring

By Louise Prance, 08-Mar-2007

Related topics: Products & Markets, Colour Cosmetics, Skin Care

Following a year long review of its operations across Europe, Proctor and Gamble (P&G) has announced this week the loss of 280 jobs from its skin care production plant in Nenagh, Ireland.

All 600 workers were warned by management of imminent cost-cutting plans earlier in the year, which included the threat to all roles within the plant - a move that was widely expected following local and media speculation.

P&G plans to relocate the entire skin care production to a new plant planned in Lodz, Poland for 2009, citing financial and economic reasons as a main bearing on the decision.

The company's skin care business in Central and Eastern Europe has achieved significant growth in recent years, with the new plant destination allowing it to focus more specifically on these fast growing areas, due to its geographical proximity.

Plant manager Mindy Thompson stated, "This was a difficult decision taken on the basis of market trends and not a reflection of the high quality work of our employees at Nenagh."

The Nenagh plant will now become the main focus of the company's European cosmetics supply chain operations and will continue to manufacture colour cosmetic products.

Future cosmetics production will focus on the Western European market and will allow 220 employees to maintain their current positions within the Irish plant.

"The Cosmetics Business is more complex, higher value, and is distributed differently with more focus on Western Europe. Production of Cosmetics therefore remains at Nenagh following the necessary rationalization of the day-to day running of the plant to ensure its long-term sustainability" a spokesperson said.

The plant was originally acquired by P&G in 1985 and, at present, manufacturers leading brands such as Olay skin care, Max Factor cosmetics, Lacoste, D&G and Boss.

A local management team is now said to be helping employees affected by the decision, offering them solutions for after the closure of the skin care production facility actually takes place.

Thompson said, "Our focus now is to work closely with our employees to ensure they are supported at this time and through the transition ahead. We will maximise the opportunity we've been given for the future of the Nenagh plant to become the focus of our European Cosmetics Supply Chain Operations".