ABP Linden, part of Irish firm ABP Food Group, announced the closure of a Dungannon packing site with the loss of 338 jobs on Monday night.
It said “changes to the UK landscape” had made it necessary to reduce the number of its retail packing facilities and close the site at Granville Industrial Estate.
The company added the decision had been “a very difficult step” but that other processing sites were not affected.
Jim Allister, TUV leader and North Antrim MP
ABP, which was founded by Irish businessman and so-called ‘beef baron’ Larry Goodman in 1954, acquired Linden Foods in full in 2021.
The deal gave ABP control of around 40% of the beef and lamb market in Northern Ireland.
TUV leader Jim Allister, the leader of the TUV and MP for North Antrim, said the job losses were “devastating for those concerned and their families”.
But he said he had been informed by an “industry source” that ABP Linden was likely to have been “profoundly impacted” by post-Brexit changes enshrined in the Windsor Framework.
The introduction of checks on items such as meat entering NI from Great Britain, made to ensure NI remains in the EU single market for goods, has imposed what unionists have called “an Irish Sea border” which has also brought added costs.
Mr Allister said: “While it continues to make sense for companies like ABP to buy meat produced on NI farms for sale in NI or to be moved one way to Great Britain, I fear it no longer makes financial sense for it to take meat from GB to a packaging facility in NI.”
He said responsibility was “with those who imposed the border” as he blamed the EU, Republic of Ireland and the UK Government.
Asked if post-Brexit changes had played an role in its decision, ABP Food Group said: “As the internal consultation process has only just commenced, out of respect to those colleagues who are potentially impacted, it would not be appropriate to comment further at this time.”
The MP for Fermanagh and South Tyrone said there had been “massive shock” at the announcement.
Pat Cullen said Sinn Fein had requested a meeting with the company.
“What we will be principally asking the company to do, is prioritising redeployment for those employees and – given that they have other factories throughout the constituency and further afield – we’ll be asking them to give priority to moving those people to those other areas, first and foremost,” Ms Cullen told BBC NI.
She declined to address Mr Allister’s argument that the Irish Sea border was to blame for the job losses.
Niall Maneely, president of Dungannon and South Tyrone Chamber of Commerce and Industry, said he was “shocked and deeply concerned” by the job losses.
“The business, located on the outskirts of the town, has played an important role as one of the area’s major food processors. The employment it has provided over the years has contributed significantly to the vibrancy and economic well-being of the town and wider community.”
He said that while ABP Food Group made its own business decisions, “the Chamber would strongly urge that any job losses be implemented gradually rather than through a complete and immediate shutdown”.
“A full closure would send shockwaves through the town and would be damaging for other local businesses, town centre traders, and property owners who provide rental accommodation for workers.”
More than 300 jobs are at risk at the factory. Photo from 2020.
News catch up – Tuesday 20th January
But he said he hoped employees would be able to find work nearby, “given the strength of the food sector within the area”.
Karol McQuade, SDLP Dungannon councillor, said: “The SDLP will be reaching out to ABP on behalf of staff and will do everything possible to support them through this process.”