Proctor and Gamble to move production to Poland

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Manufacturing News, Source : The Manufacturer
Published : 13 Mar 2007 9:31
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COSMETICS: 280 jobs to go in Ireland as a result of strategic review of European operations

Cosmetics manufacturer Proctor and Gamble (P&G) has announced plans to pull the manufacture of skincare products out of Ireland and move it to a new plant in Poland. An estimated 280 workers out of a total of 500 at Nenagh, County Tipperary, will lose their jobs by the end of 2009.

Proctor and Gamble has been operating from Nenagh since 1985, manufacturing Max Factor and Cover Girl makeup ranges, Oil of Olay skin products, and perfumes for the Hugo Boss and Laura Biagiotti brands.

Following a year long review of P&G operations across Europe, however, the company has announced the details of a cost cutting plan which means that manufacture of the Oil of Olay skin products will be transferred to a new plant planned for Lodz in Poland. The new plant will manufacture all skincare products currently made in Europe for Proctor and Gamble.

“The decision is expected to result in the loss of approximately 280 jobs at the Nenagh plant by the end of 2009,” the company said. “Given the growth of Proctor and Gamble’s skin care business in central and Eastern Europe, it was decided from an economic and financial perspective to locate the source of skin care production closer to these markets which are growing fast.”

Ireland has benefited from considerable multinational inward investment in recent years, but with rapidly rising wages the trend seems to be reversing.