13 jobs go in Rennicks Sign company takeover

There was shock in the Kilbride (Clonee) area this week with the news that 13 local jobs will be lost at Rennicks Sign Manufacturing.

The company confirmed on Monday that it has entered into an agreement with Morelock Signs Ltd who will acquire the Rennicks road traffic sign and associated business activities.
The domestic market sales, customer service, installation and asset maintenance function employees of the business will continue to operate and offer an expanded portfolio of Rennicks and Morelock products and services to the Irish Roads Infrastructure market under the new Morelock ownership.
The production activities of both companies will be consolidated in the UK West Midlands factory and this will result in around 13 employees being made redundant at the Rennicks site in Kilbride.
Morelock Signs is the largest manufacturer and installer of reflectorised and intelligent traffic signs in the UK and it has been a long standing customer of Rennicks UK Ltd for in excess of 30 years. The business models of both companies are identical but the volume scale of the British market and its acquisition of the business in Ireland affords Morelock cost and manufacturing synergies which will enhance its broader offering in Ireland. Morelock Signs will acquire the Irish business from 30th June 2017, with 18 employees transferring to the new business. Morelock Signs Ltd will continue to trade under the Rennicks brand in Ireland.
Group Managing Director, Michael Flanagan, said: “For the past five years, we have seen a decline in the demand for domestic traffic sign production as the pace of developing new motorways has dramatically reduced. By the end of 2012, TII NRA completed the very extensive expansion of Ireland’s Motorway network over the previous decade.
“Major improvements were also made to the key Inter Urban, National Primary and National secondary routes and the company benefited from that decade of very significant Government investment in the Roads Infrastructure network.
“It is with deep regret however that our traffic sign manufacturing plant will close with around 13 employees being made redundant. Our priority now is to continue to communicate with all employees across the business.
“In excess of 85 per cent of Rennicks Group revenues are achieved outside Ireland. The company has built a significant position in the UK and South African roads infrastructure and reflectorized vehicle registration markets over the past 30 years. Our businesses in these markets are performing very strongly.
“Morelock Signs Ltd is one of our longstanding and respected UK customers and the largest manufacturer and installer of traffic signs in the UK. We have reached agreement with Morelock Signs to acquire our domestic road signs business effective from 30th June 2017.
“Combining the strong reputation of Rennicks existing Sales, Customer Service and Contracting personnel and activities with Morelock’s production cost base and broader product range offers a more sustainable future for Rennicks customers and employees in Ireland”.
Cllr Damien O’Reilly has expressed disappointment at the redundancies and is requesting state agency’s to assist in retraining these employees and assist them in sourcing new employment opportunities.