Quantum nets US$476k from Dundalk factory sale

24 Jan 2008

US data-storage equipment manufacturer, Quantum Corporation, which closed its Dundalk operation three years ago with the loss of 250 jobs, has made gains of US$476,000 (€325,603) on the US$6m sale of the factory, according to accounts filed last night.

Quantum had an operation in Dundalk, County Louth from 1991 and the storage hardware maker announced plans in 2002 to create 120 additional jobs.

However, in August 2005, the California-headquartered company announced it was to close its Dundalk plant with the loss of 250 jobs and transfer the operation to Jabil Circuit, a Hungary-based electronics outsourcing manufacturer.

According to accounts published with Quantum’s latest third-quarter results, the IT storage manufacturer is still struggling and reported revenues had fallen to US$253m from US$302m a year ago.

Despite this, stringent cost-cutting and restructuring plans have enabled Quantum to double its operating income to US$9m.

In a filing submitted to the SEC in December 2006, Quantum ratcheted up a total of US$9m in severance pay charges for 267 workers.

A further charge of US$900,000 was recorded in the SEC filing as part of the plan to outsource certain repair services from Dundalk to Jabil Circuit’s operations in Mexico.

The SEC filing revealed Quantum sold its Dundalk plant to an unnamed third party for approximately €5m, which worked out at US$6.3m, and made a gain on the facility closure of US$476,000.

By John Kennedy