The Co. Tipperary dairy products manufacturer Corman Miloko which employs 31 people, is to close in June.
The company, which is a joint venture between the Belgium headquartered organisation Corman and Tirlán (formerly Glanbia Ireland).
The Carrick-on-Suir production site in Co. Tipperary specialised in dairy spreads and butterfat products and chiefly exported to global markets.
Corman was the majority stakeholder in the joint venture with a 55% stake.
A spokesperson for Corman Miloko said:
“This difficult decision arises as a result of a reduction in the volume of business contracted at the facility in recent years and following significant restructuring efforts to enable it to operate in a highly competitive marketplace”.
It outlined that its 31 employees at the site “are impacted by the closure” that is scheduled for the end of June 2023.
Production will however continue at the Co. Tipperary site until the closure date.
“The company will now liaise with employees and their representatives through this process,” the spokesperson detailed.
The trade union Unite said the announcement had come as a shock to its employees in Co. Tipperary and would have a major impact on the local community.
The union said it plans to engage with the company and to explore “redeployment” opportunities for the workforce in Carrick-on-Suir and to support employees to “maximise redundancy packages” where necessary.
Unite said it hoped that because Tirlán had a 45% stake in the joint venture that management would engage “constructively” with the trade union.
The joint venture company has been in operation since 2005 when the then Glanbia-owned factory in Carrick-on-Suir, Co Tipperary was transferred into Corman Miloko.
The transaction had to be approved by the European Commission under EU merger regulations.
At the time it was understood that Glanbia (now Tirlán) planned to employs the Belgian group’s business approach to enhance the operations and performance of the Co. Tipperary plant.
Corman is part of the Savencia Fromage and Dairy group, the second largest cheese group in France and fifth in the world.
The family-controlled business is listed on the Euronext Paris and its portfolio of cheeses includes leading brands such as Saint Agur Blue and Coeur de Lion.