It emerged today that Dublin-based supply chain management technology firm SerCom Solutions is to lay off 220 out of 252 existing workers despite the fact that its parent company DCC has spent €19.3m on two new acquisitions in the UK energy market.
SerCom Solutions employs a total of 552 people in Dublin and Limerick. The remaining 32 jobs in Dublin will be located in a smaller Dublin facility. These principally comprise the personnel required to provide the support services to the remaining group operations.
SerCom’s parent company DCC this morning announced that it has spent €19.2m to acquire two UK companies. As part of the acquisition plan DCC Energy acquired Dyneley Holdings, a UK fuel-card business, and DCC Healthcare acquired Laleham Healthcare, a UK contract manufacturer.
In a statement this afternoon, DCC said that over the past few years, SerCom Solutions had been impacted by the trend for technology companies, its traditional customer base, to relocate their manufacturing activities in eastern Europe and Asia. “In addition, the mix of services provided to its customers has changed with a significant reduction in the demand for print.”
The statement continued: “In order to ensure the business continues to provide the highest quality service to its key customers in a profitable manner and to ensure the future viability of the business, it has been decided to cease production activities at its Dublin facility.”
This, the company said, will result in the print activities being outsourced and the associated assembly activities of its key Dublin customers being transferred to its Limerick facility, which is currently being extended, with plans to create additional employment as the Dublin business is transferred.
“Following the SerCom Solutions restructuring programme, the business should be profitable and cash generative. The business will continue to implement its strategy of providing world-class supply chain management services to its existing customers, while broadening its customer base into new sectors and selective geographies, including Poland and the US,” the company said.
By John Kennedy