Glen Dimplex announces substantial investment in Newry and closure of Craigavon site with 200 jobs at risk

Newry-founded global heating and ventilation firm Glen Dimplex has reveal plans to close its manufacturing site in Portadown, with around 200 jobs expected to go in Northern Ireland over the next two years.

Following a strategic review and and reorganisation strategy of its island-wide operations, the consumer electrical goods firm also confirmed it will invest €25million in its Newry site, which will be repurposed into a centre of excellence.

The firm has briefed staff on the 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% to over 1,000 staff within five years.

Today Glen Dimplex employs over 8,000 people globally. A €10m investment is planned in Lithuania to leverage existing manufacturing capacity and become a centre of excellence for storage heating and panel heaters.

The firm plans to consolidated from five sites to three flagship hubs. Currently the group has manufacturing locations in Newry and Portadown, two sites in Dunleer and a sales and distribution operation in Cloghran that is co-located with its head office.

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 with some staff redeploying to Newry.

Fergal Leamy, Glen Dimplex Group CEO, explained: “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 re-orientate 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.”

The firm added that there will be no redundancies as part of the planned reorganisation of operations for at least six months.

Responding to the announcement, Kieran Donoghue, chief executive, Invest Northern Ireland, said: “The news of Glen Dimplex‘s plans to wind down its facility in Portadown over the next two years will be deeply upsetting for staff. We will work with the company and those affected to identify alternative employment opportunities and to pursue reskilling opportunities as appropriate. We will also work closely with the Department for the Economy and the Department for Communities to support the employees impacted by this decision.

“The company has been clear that the decision to consolidate its operations in Northern Ireland and the Republic of Ireland is for commercial reasons. This restructuring will support its ultimate growth plans and potentially see the firm expand its business in Northern Ireland out of its second site in Newry. We will continue to work with the company to capture opportunities for further investment and job creation at this facility.”

In the ROI the Group also plans to relocate its fast-growing sales and distribution arm, Glen Dimplex Ireland [‘GDI’]) from Cloghran to Dunleer, County Louth, in the next two years and relocate its head office in Cloghran to another Dublin location with a more sustainable footprint.

They also plan to invest over €15m in the group’s Dunleer operations. This will result in consolidation from two 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 plan to transfer the manufacturing of flame products from Dunleer to a long term partner in China.

Invest in a purpose-built ventilation facility in Dunleer that will also allow the group to substantially grow its’ low carbon ventilation business in core markets.

Overall Group employment in Dunleer is expected to be materially higher by 2029 as a result of redeployment from Cloghran and continuing growth in GDI. There will be some headcount reduction in Dunleer in late 2024.

This complex but critical transition will require a mix of retraining, redeployment, redundancies and new hires over the next five 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 about the proposed reorganisation and investment programme that will be implemented on a phased basis from late 2024 through 2026. 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.