O’Neills warn of jobs losses if Strabane extension not approved

O’NEILLS have warned there could be ‘significant’ job losses among its 800-strong workforce in Strabane if a proposed extension to its factory is not approved.

The huge sportswear company has applied for planning permission to add a large extension to its base at Dublin Road Industrial Estate.

O’Neills says the extension is necessary to allow it to stockpile raw materials and ease supply problems caused by Brexit.

If the necessary permission is not granted by Derry City and Strabane District Council, the company has warned, work currently carried out in Strabane could move to its other production facility in Dublin.

“Delays or refusal of planning approval will lead to significant risks,” according to a statement submitted on behalf of O’Neills as part of the new planning application.

“Operationally, without the ability to stockpile essential materials, production delays, missed customer commitments and lost revenue will occur.

“Competitively, orders may be redirected to O’Neills Dublin facilities, diminishing Strabane’s importance within the group.

“Capital expenditure in the region of £2.5m and significant job losses affecting 800 employees will also be at risk which will have a negative impact in terms of indirect taxes and payroll in Strabane and the Northern Ireland economy.”

O’Neills, which sells its products throughout the world, was founded in 1918 and last year marked the 50th anniversary of the opening of its Strabane factory.

The company designs, manufactures and sells sports and leisure wear and is known mostly for GAA sportswear. As well as its production facilities, O’Neills also have a number of retail stores throughout Ireland.

The new plans for the Strabane factory, which were lodged with the local council last week, would see the construction of a two-storey extension for use as a ‘storage and distribution warehouse’.

“The need for the new warehouse is driven by several key factors,” states the O’Neills’ planning statement.

“Brexit has disrupted just-in-time supply chain arrangements for raw materials from the EU (European Union).

“The new warehouse will counteract the issues introduced by Brexit, as it will allow O’Neills to stockpile a minimum of eight weeks’ worth of raw materials, leading to a transition away from Just In Time (JIT) practices.”

The statement said the proposed warehouse was ‘essential’ to the success of O’Neills’ operations in Strabane.

“It will mitigate Brexit-related supply chain risks, enable the facility to compete effectively within its wider group activities, and ensure the long-term sustainability of local employment.

“O’Neills Irish International Sports Co. Ltd request Derry City and Strabane District Council approve this application promptly to secure Strabane’s position as a vital component of the company’s global operations and contribute to the economic stability and growth of Northern Ireland.”