'Operational restructuring' the reason for redundancies at Offaly plant

Management at Clara company Nelipak where 40 redundancies are being sought has said that ''in order to align resources at the Clara site with current production requirements,'' it has ''made the difficult decision to pursue an operational restructuring program which will result in production staff reductions.''

Responding to our query, Seán Egan Director of Global Marketing said, ''the restructuring program is in response to current expectations for 2025 customer demand at the Clara site including the ongoing impact of inventory and demand normalisation throughout the global healthcare supply chain.''

Mr Egan said the Clara site remains among the largest of Nelipak’s eleven global production sites with a broad range of capabilities and customers.

''Nelipak is committed to ensuring that the Clara site is well positioned for continued growth, investment and success in the coming years,'' he said.

The plant located on the Kilbeggan road produces sterile-barrier packaging as well as packaging and laboratory services for the global medical device and pharma drug delivery markets.

Barry Cowen, Fianna Fáil MEP for the Midlands North-West, and Clara native has voiced ‘serious concern’ following the announcement.

He said, ''the sudden nature of the announcement and the short timeframe given to employees to decide on redundancy packages have raised significant concerns. Reports suggest the redundancy package being offered includes two weeks' statutory pay plus an additional two weeks per year of service.''

MEP Cowen reiterated the comments of Fianna Fáil TD for Offaly, Tony McCormack, who stated that he would be engaging with Minister Peter Burke to ensure that relevant Government agencies provide necessary support for affected workers as they transition out of their roles.

He also highlighted broader concerns about the vulnerability of industries like medical packaging in light of renewed global trade tensions, including the impact of potential tariffs under a second Trump administration.

''The news of 40 job losses at Nelipak is deeply concerning for Clara and the wider Midlands region. This plant has been a vital employer and we must ensure that those affected receive the support they need. I have reached out to both company management and Government representatives to seek clarity on the situation and to push for appropriate measures to assist workers.”

''Furthermore, it is essential that Nelipak provides assurances regarding the long-term viability of its operations in Clara. We cannot afford to see another major employer in the region wind down without a clear plan for its workforce and the local economy.''

''This situation also highlights the need for a strategic approach to be taken in the years to come as Ireland navigates shifting EU-US trade relations, particularly in sectors like medical packaging. We must ensure that Ireland remains competitive and that policies are in place to safeguard employment in industries vulnerable to shifting global supply chains,'' said MEP Cowen.