Fruit Of The Loom To Close Irish Production

Fruit of the Loom, once the largest textile employer in Ireland, announced plans Wednesday to close both of its plants on the island and transfer production to Morocco. In a statement, Fruit of the Loom said Ireland was no longer a cost-effective base for its spinning, knitting and dyeing operations.

The company blamed rising wage levels in Ireland, heavy discounting in the European clothes market, and the World Trade Organization's decision to overturn European Union restrictions on textile imports from Asia. Deputy Prime Minister Mary Harney said the decision was "very disappointing but reflects the fact that the (textiles) sector is no longer competitive, not just in Ireland, but in this part of the world."

Fruit of the Loom said both plants - one in the Irish Republic town of Buncrana employing 370 people, the other in the Northern Ireland city of Londonderry employing 260 - would shut down within five years. The company said it was making its intentions clear now so that workers could begin retraining and looking for other jobs. The company, based in Bowling Green, Ky., specializes in making underwear, sports wear and children's clothing. It made Ireland its major European manufacturing base in 1987 and employed more than 3,500 at its peak.

But Fruit of the Loom has struggled to survive over the past decade. It filed for bankruptcy protection in 2002, then billionaire investor Warren Buffett snapped it up for USD840 million US, turning the firm into a subsidiary of Berkshire Hathaway. Fruit of the Loom has already shut down much of its U.S. and Irish manufacturing base in favour of Morocco, where it employs 1,700 people at a fraction of the cost.