AN electronic components company has announced it plans to close an Irish base by the end of next year - with the loss of 500 jobs.

Staff at Molex Ireland in Shannon, Clare, had a meeting with management today.

1 Molex Ireland in Shannon, Clare Credit: Google Maps

The firm employs up to 500 people in the area and has been operating there since 1971.

Molex said in a statement today: "Following a review of the product lines manufactured at its facility in Shannon, Ireland, Molex today announced its intention to close that facility by the end of 2020, subject to an employee consultation process.

"The closure is expected to take place in a series of phases, starting in early 2020.

"The majority of products made at the Shannon facility have insufficient financial returns and growth potential.

"Therefore, these products will either be exited or divested, with any remaining products transferred to other Molex facilities."



'VERY DIFFICULT'

They added: "The impact of this decision will regrettably result in the closure of the facility impacting up to 500 employees.

"Announcing our intention to close this facility is very difficult due to its impact on our employees, and the deep ties Molex has with the region and its people having operated in Shannon since 1971.

"The decision in no way reflects on our Shannon employees, who have made an invaluable contribution to our business over many years."

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"We are now focusing our efforts on engaging with our employees following this difficult announcement and that includes a comprehensive programme of supports to help them with the transition ahead."

Parent company Molex Incorporated is based in Illinois in the US.

100 people were let go by the company ten years ago and pay was cut by 5 per cent due to a fall in demand for products.