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Glen Dimplex have announced today, 8 February, that they propose to invest €25m in its Newry site at Greenbank Industrial Estate.
Formerly Glen Electric the company was founded in Newry in 1973 and currently it employs over 8000 people spread throughought 20 countries in four key sectors of Heating and Ventilation Precision Cooling, Flame, and Consumer Appliances with a portfolio of products and solutions designed to make life easier, better and more energy efficient for its customers.
The Glen Dimplex factory in Newry will be repurposed into a centre of excellence for the manufacture of zero carbon, renewable heating solutions including heat pumps. Current 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.
The proposals follow a strategic review of the company's island-wide operations. Glen Dimplex today briefed staff on plans to invest €50m to re-orientate its manufacturing operations here and in Continental Europe to meet the growing demand for increasingly sustainable and smart heating and ventilation solutions for homes and businesses.
The proposals will see €40m being invested in manufacturing, R&D activity and new sales and distribution facilities on the island of Ireland, where total employment is expected to increase by 20 per cent to over 1,000 staff within five years.
The Group’s footprint on the island will be consolidated from five sites to three flagship hubs as it transitions to higher value manufacturing, to become a centre of excellence and R&D hub for zero carbon heating and ventilation technologies in the Group. Currently the Group has manufacturing locations in Newry and Portadown, two sites in Dunleer and a sales and distribution operation in Cloghran (near Dublin Airport) that is co-located with its head office.
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.
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. 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.”
