Brexit among reasons for closure of Kilkenny Envelopes with the loss of 24 jobs
The facility was announced to Kilkenny in 2012.
Kilkenny Envelopes is set to close with the loss of a number jobs locally.
A representative of the Purcellsinch-based company confirmed the news to KCLR on Wednesday morning. 24 jobs will be lost as a result of the closure.
Statement on closure from Kilkenny Envelopes
KCLR contacted ESCo, The Envelope Supply Company for a statement on the future of their Kilkenny operation. The closure for 29 March was confirmed at midday on Wednesday.
“It is with regret that the shareholders’ of Kilkenny Envelopes have to announce the closure of their Kilkenny factory, production to cease as of Thursday 29th, 2018.”
“The factory was established six years ago to primarily supply the UK market with a high volume commercial envelope range but, following the Brexit vote in June, 2016 and the resulting fall in value of GBP Sterling, volume demand within the UK has fallen due to these exports becoming uncompetitive against UK manufacturers.”
“Trading conditions within the UK market remain extremely difficult and, whilst the shareholders have invested heavily in our Irish factory to support the business, particularly following the Brexit vote, the continuing monthly losses and weakened demand have resulted in the decision to close the factory with a loss of 24 jobs in total.”
A promising start in Kilkenny
Kilkenny Envelopes was set up by The Envelope Supply Comany (ESCo).
The IDA announced in 2012 that ESCo would establish an envelope manufacturing facility in Kilkenny, with 32 jobs planned for the end of 2014.
At the time of the announcement, Sue Hale, Managing Director of the Envelope Supply Company confirmed the company’s decision to locate in Kilkenny.
“In order to continue the strong development of our company, it was important to increase our capacity and range of product but, in doing so, it was equally important to secure a committed, enthusiastic and knowledgeable team around us.”
“We have only a positive experience of Ireland as a base for manufacturing and the response from the local people and the support from the IDA has made our decision to base our production facility in Kilkenny an easy choice. Installation of machines and equipment is already underway and we expect production to commence towards the end of July. Many of the initial positions have been filled and further recruitment will be taking place within the next few weeks as we come closer to our start-up date”.
Growing in 2016
“In 2012, our continued increased sales development required additional production capacity and ESCO took the decision to open a new factory in Kilkenny, Ireland, specialising in the production of commercial self seal wallets and pockets and large format mailing wallets not produced at our German factory.”
“This new site with 5 W & D machines, allowed ESCO to increase the product offering supplied and provide a more flexible service to our growing customer base. The Irish factory continues to develop with the addition of a further machine installed in the first quarter of 2016 to cope with our continual growth.”
Second Envelope Casualty In Past Year
Kilkenny Envelopes is located opposite the old Koverto Envelopes / Colour World factory within the Purcellsinch estate.
Koverto too has seen hard times, the company placed into liquidation in October 2017.
