Although significant job losses (140) were announced by car parts manufacturer Kostal in Abbeyfeale at the weekend, the site will retain a workforce of 360. Of the losses, 95 are operator roles and 45 non-operator positions.
The company’s Abbeyfeale manufacturing plant will cease OBC (onboard charger) production sometime in Quarter 4 of 2026.
Factors for the decision include availability of excess production capacity in China, and OBC products approaching end-of-life with no successor products for Kostal Ireland.
The German-based company said the board’s decision was “not made in haste” but that Kostal “experienced, and is experiencing challenges” due to lower sales of car lines using its OBCs.
The need to align with the company’s global strategic direction for power electronics production was also cited as a reason for the scale-back of operations in Abbyefeale.
There will be no redundancies at its sister plant in Mallow, Co. Cork.
“Kostal Automobil Elektrik can confirm that it has informed employees today that it has taken the difficult decision to restructure its Irish operations in Limerick. Regrettably, this will result in the loss of 140 jobs at its manufacturing site in Abbeyfeale, by the end of 2026,” a company spokesperson said.
“Today’s announcement in no way reflects upon the commitment and work ethic of employees at Kostal’s Abbeyfeale site. Kostal has had a presence in Abbeyfeale since 1981, manufacturing products for the global automotive industry, with OBC products being manufactured since 2011.
“As part of the redundancy announcement, Kostal will now enter into a consultation process with employees and their representatives. The company remains committed to acting in a fair, balanced and constructive way as Kostal navigates the current challenges facing the automotive industry and positions for future success.”