The games company Cartamundi cites ‘structural overcapacity and reduced demand’ as the reasons for the closure of its Waterford factory and ‘right sizing’ of its East Longmeadow factory.
The Belgian board and card games manufacturer Cartamundi has announced that it is to close its Waterford manufacturing facility in Ireland, a site David Germis, president of Cartamundi’s Global Solutions Division, says has been ‘a source of reliable quality production’ since 2015.
The company gave a number of reasons for its decision, including the lingering inflation of shipping and materials and reduced demand for games since the pandemic. The closure of the factory will mean the loss of 234 jobs. Cartamundi has begun consultations with employees, their representatives and state agencies.
Cartamundi is also ‘right sizing’ its Massachusetts factory in East Longmeadow.
In an official statement regarding the Waterford closure, David said: “It is particularly regrettable that we plan to close our Waterford facility. It has been a source of reliable quality production and we wish to thank the management and employees for their dedication and continued application in ensuring the continuous supply of products to our customers, particularly in the recent difficult times. The factory in Waterford has been suffering losses for many months now and this is not sustainable.”
Managing director Barry Morrissey stated: “This is a very sad day for Cartamundi Ireland. We are very proud of the quality of the work and the legacy of the plant and its people in Waterford and appreciate the efforts of everyone at the plant. Our immediate concern is the welfare of our employees. We would like to thank all our employees for their ongoing commitment, in particular during the uncertainty of recent months, and we thank IDA Ireland, the Irish Government, the local community, suppliers and customers for their support.”
When approached for direct comment, Cartamundi provided Toy World with a reactive press statement outlining what it is calling ‘organizational changes’.
In part, the statement reads: “A significant drop in demand and changed consumer preferences have resulted in a structural, industry-wide over-capacity in manufacturing and excess inventory in the market. To address these challenges, Cartamundi must adapt to the new economic reality, and make a series of changes to embrace the future. This includes the reorganization some of its manufacturing facilities.
In the Solutions division, Cartamundi has the intention to close the board games facility in Waterford, Ireland and to right size the organization in the board games facility in the US, located in East Longmeadow, Massachusetts… The measures are necessary to adjust the company to the reality of the market and better position the company in this challenging market.”
The statement also says the company will ‘communicate openly and transparently’ with those affected, and will provide resources and support.