The US parent company of Co. Carlow-based agri-machinery manufacturer Keenan has confirmed that it intends to axe jobs in Ireland in a move that could affect up to 50 people.
Kentucky-headquartered Alltech, which was founded in 1980 by Irish biochemist Dr. Pearse Lyons, acquired Keenan in 2016.
Alltech today (Wednesday, March 8) confirmed to Agriland that it has informed some of its workforce in Borris that they are “at risk of redundancy”.
The US group, which has more than 20 companies around the world, said that Keenan had faced “intense headwinds over the past couple years, including supply chain challenges and slowdowns, rising steel prices and labor shortages”.
“We have not weathered these storms as well as we should have, and we must cut costs to return to profitability,” Alltech stated.
In a statement, the group said it continued to believe in the “potential” it saw in Keenan when it acquired the business in 2016.
However, it added:
“We are committed to restoring the strength of the Keenan brand with our customers and are taking immediate actions to do so.
“We recognise that we did not integrate Keenan deeply enough into the Alltech family. As a result, Keenan struggled to stay resilient in recent challenges.”
The group said its new plan for the Irish business includes “more closely aligning our teams”.
“Keenan’s strategy will be directly managed by Alltech executive leadership.
“We will be focused on where we can add the greatest value, including nutritional solutions and services, further enhanced by digital technology. We will be investing in developing Keenan’s strategic differentiation in these areas,” it stated.
It has also confirmed its intention to potentially enter into “machine manufacturing partnerships”.
“We believe collaboration with partners who share our vision will better enable us to meet our customers’ expectations for quality, on time delivery and operational support in a challenging manufacturing environment,” Alltech added.
According to the group a consultation process is now underway with affected members of staff at Keenan; this process is expected to conclude on April, 3.