Glen Dimplex announces substantial investment and reorganisation of its island-wide operations as it positions for growth

Programme Overview:

• Consolidating from five sites to three:
• Creating world class manufacturing facilities (N. Ireland & ROI) to support future growth areas
• Focus on manufacturing and R&D for a new generation of low carbon heating and ventilation solutions 
• Includes new facilities for all—island sales and distribution and Head Office 
   
• €50M to be invested in new and upgraded facilities as existing plants reach end of life: 
  • €40m of which is to be invested island-wide making it the largest ever single investment here by Glen Dimplex
     
• Though overall employment will increase by over 200 roles by 2029, there will be job losses:
  • Workforce composition will change as a result of retraining, redeployment, redundancies and new hires.
  • Subject to the outcome of a staff consultation process, up to 300 net redundancies are expected between late 2024 and 2026. 

Thursday, February 8, 2024: Following a strategic review of its island-wide operations Glen Dimplex has today briefed staff on plans to invest €50m to re-orientate its manufacturing operations here and in Continental Europe to meet the growing demand for increasingly sustainable and smart heating and ventilation solutions for homes and businesses. 

The proposals  will see €40m being invested in manufacturing, R&D activity and new sales and distribution facilities on the island of Ireland, where total employment is expected to increase by 20 per cent to over 1,000 staff within five years. Today Glen Dimplex employs over 8,000 people globally. A €10m investment is planned in Lithuania to leverage existing manufacturing capacity and become a centre of excellence for storage heating and panel heaters. 

The Group’s footprint on the island will be consolidated from five sites to three flagship hubs as it transitions to higher value manufacturing, to become a centre of excellence and R&D hub for zero carbon heating and ventilation technologies in the Group. Currently the Group has manufacturing locations in Newry and Portadown, two sites in Dunleer and a sales and distribution operation in Cloghran (near Dublin Airport) that is co-located with its head office. 

In Northern Ireland, the Group proposes to:

• Invest around €25m in its Newry site which will be repurposed into a centre of excellence for the manufacture of zero carbon, renewable heating solutions including heat pumps. 
• panel and storage heating manufacturing will transfer from the Group’s sites in Newry and Portadown to its existing manufacturing site in Lithuania. Under this proposal, the Portadown site will close, most likely in 2025, with some staff redeploying to Newry whose operations will also evolve significantly. 

In the ROI the Group plans to:

• Relocate its fast-growing sales and distribution arm (Glen Dimplex Ireland [‘GDI’]) from Cloghran to Dunleer, County Louth, in the next two years.
• Relocate its Head Office in Cloghran to another Dublin location with a more sustainable footprint. 
• Invest over €15m in the Group’s Dunleer operations. This will result in consolidation from two sites (Barn Road and Ardee Road) to one multi-purpose facility at Ardee Road which, subject to planning permission, will incorporate GDI and its associated warehousing and distribution activities, a state-of-the-art showroom, a new R&D facility and ventilation manufacturing.
• Transfer the manufacturing of Flame products from Dunleer to a long term partner in China.
• Invest in a purpose built ventilation facility in Dunleer that will allow the Group to substantially grow its’ low carbon ventilation business in core markets.
• overall Group employment in Dunleer is expected to be materially higher by 2029 as a result of redeployment from Cloghran and continuing growth in GDI. There will be some headcount reduction in Dunleer in late 2024.

This complex but critical transition will require a mix of retraining, redeployment, redundancies and new hires over the next 5 years, following which total headcount on the island of Ireland will have increased from 800 today to over 1,000 staff.  The proposals will ensure the Group’s island-wide operations will be optimally positioned for growth on an environmentally and commercially sustainable basis as it seeks to both drive and benefit from the transition to electrification of energy.

Employees at all Glen Dimplex sites were briefed today about the proposed reorganisation and investment programme that will be implemented on a phased basis from late 2024 through 2026. There will be no redundancies as part of the planned reorganisation of operations for at least 6 months.  Management will work with employee representatives, union groups and training agencies to ensure the planned transitions are as seamless as possible and that appropriate outplacement and training supports are provided. 

Fergal Leamy, Glen Dimplex Group CEO commented: “Glen Dimplex has always been a leader in electric heating solutions for homes and businesses. The drive for zero carbon renewable electricity requires a transition in the technology and appliances used in our homes and businesses, especially in smart and sustainable heating and ventilation solutions such as next generation heat pumps, ventilation and storage solutions using renewable energy sources. 

“By signalling these proposed changes significantly in advance of proposed implementation we aim to mitigate the impact on staff and minimise redundancies through training and redeployment and affording the opportunity to apply for hundreds of new roles that will be created over the coming years.

“Our proposed €50m investment will reorientate our operations on this island so that they are environmentally and economically sustainable and a major driving force in the next chapter of growth at Glen Dimplex. Our transition will bring significant change and challenge in the near term but also phenomenal opportunities for the next generation and beyond.  One thing is clear; the status quo is not an option as consumer demand and public policy chart course for zero carbon future.”

Ends

Issued by Murray on behalf of Glen Dimplex Group

For further information contact:

Nicola Cooke at ncooke@murraygroup.ie / +353 (0) 87 7806125

About Glen Dimplex Group

Established in 1973, Glen Dimplex is a privately owned, Irish headquartered manufacturing group. Employing over 8,000 people, the Group works across an international footprint of 20 countries in four key sectors of Heating and Ventilation Precision Cooling, Flame, and Consumer Appliances with a portfolio of products and solutions designed to make life easier, better and more energy efficient for its customers. The Group’s main business area is focused on low carbon, electric heating and ventilation solutions and it strives to to help its customers transition from fossil fuels and to provide comfort within buildings by developing innovative, flexible, and up-to-date heating solutions that can support the shift to the electrification of heat.