Glen Dimplex unveils €15m investment plan for Dunleer but jobs cut expected

Electrical goods firm Glen Dimplex has announced a  €15m investment in its Dunleer site as part of a strategic review of its island-wide operations.

As part of the move the firm plans to relocate its fast-growing sales and distribution arm (Glen Dimplex Ireland [‘GDI’]) from Cloghran in Dublin to Dunleer in the next two years.

Additionally, the company say they will consolidate their two Dunleer sites  (Barn Road and Ardee Road) to one multi-purpose facility at Ardee Road which, subject to planning permission, will incorporate GDI and its associated warehousing and distribution activities, a state-of-the-art showroom, a new R&D facility and ventilation manufacturing.

They also intend to invest in a purpose built ventilation facility in Dunleer that will allow the Group to substantially grow its’ low carbon ventilation business in core markets.

Although a statement released by the companies says they also plan to transfer the manufacturing of flame products from Dunleer to a long term partner in China resulting in “ headcount reduction in Dunleer in late 2024”; They do however, claim that group employment in Dunleer is expected to be materially higher by 2029 as a result of redeployment from Cloghran and continuing growth in GDI. 

Employees at all Glen Dimplex sites were briefed today about the proposed reorganisation and investment programme that will be implemented on a phased basis from late 2024 through 2026. 

There will be no redundancies as part of the planned reorganisation of operations for at least 6 months.  

Glen Dimplex say management will work with employee representatives, union groups and training agencies to ensure the planned transitions are as seamless as possible and that appropriate outplacement and training supports are provided. 

Fergal Leamy, Glen Dimplex Group CEO commented: “Glen Dimplex has always been a leader in electric heating solutions for homes and businesses. The drive for zero carbon renewable electricity requires a transition in the technology and appliances used in our homes and businesses, especially in smart and sustainable heating and ventilation solutions such as next generation heat pumps, ventilation and storage solutions using renewable energy sources. 

“By signalling these proposed changes significantly in advance of proposed implementation we aim to mitigate the impact on staff and minimise redundancies through training and redeployment and affording the opportunity to apply for hundreds of new roles that will be created over the coming years.

“Our proposed €50m investment will reorientate our operations on this island so that they are environmentally and economically sustainable and a major driving force in the next chapter of growth at Glen Dimplex. Our transition will bring significant change and challenge in the near term but also phenomenal opportunities for the next generation and beyond.  One thing is clear; the status quo is not an option as consumer demand and public policy chart course for zero carbon future.”

Up the M1 in Newry the company additionally say they will invest around €25m in its site which will be repurposed into a centre of excellence for the manufacture of zero carbon, renewable heating solutions including heat pumps. Panel and storage heating manufacturing will transfer from the Group’s sites in Newry and Portadown to its existing manufacturing site in Lithuania. 

Under this proposal, the Portadown site will close, most likely in 2025, with some staff redeploying to Newry whose operations will also evolve significantly. 

A statement from the company emphasised:

“This complex but critical transition will require a mix of retraining, redeployment, redundancies and new hires over the next 5 years, following which total headcount on the island of Ireland will have increased from 800 today to over 1,000 staff.  

“The proposals will ensure the Group’s island-wide operations will be optimally positioned for growth on an environmentally and commercially sustainable basis as it seeks to both drive and benefit from the transition to electrification of energy.”