SerCom Solutions, the supply chain management subsidiary of industrial holding group DCC, has announced the closure of its Dublin headquarters with the loss of up to 220 jobs.
SerCom, which has struggled for profitability in recent years, will transfer operations to its Limerick plant.
The company blamed the closure on the trend among its core customer base of technology companies to relocate their manufacturing operations to eastern Europe and Asia. It has also seen a sharp decline in demand for its printing services.
The Clondalkin unit will close on April 29th. The company is still negotiating redundancy terms with staff. A spokesman said the company hoped to complete these within the next week.
A number of staff will be offered the opportunity to relocate to SerCom's Limerick unit although the company was not able to say yesterday precisely how many jobs would be available. SerCom will retain a small presence in Dublin with just 32 support staff.
The company said it would broaden its customer base into new sectors, principally the rapidly growing medical device industry.
It is also looking to expand its business into Poland and the United States. The closure is the latest bad news to hit the company and was widely expected by staff. SerCom lost around €900,000 in the year to the end of March last.
At the time, DCC chief executive Mr Jim Flavin said that SerCom "was not an area in which we are seeking to deploy additional capital".
The company, which began life as a printer of computer manuals, closed a plant at Greenock in Scotland a couple of years ago after key clients outsourced their manufacturing operations.
Public representatives said the news was a serious blow to the local community.
"The loss of so many jobs will be difficult to recover from," said Green Party TD Mr Paul Gogarty.
Labour Senator Ms Joanna Tuffy said the announcement was the latest in a series of closures in the Clondalkin area which had in recent years become more used to companies moving into the area.
"It is extremely worrying that yet another manufacturing and technology company based in Ireland has succumbed to cheaper competition and labour costs in eastern Europe and Asia.
"Ireland cannot afford to lose jobs on this scale," she added, calling on the Minister for Enterprise, Trade and Employment, Mr Martin to help attract new jobs to the area.
