A COMPANY IN Co Cavan that had been manufacturing rapid-build homes is to close its factory with the loss of dozens of jobs.

Modern Homes Ireland has confirmed it’s closed its production plant in Ballyjamesduff with immediate effect, citing “sustained low levels of activity” in the Irish residential property market.

It’s understood up to 20 full-time jobs and approximately 50 part-time contractor roles will be lost as a result.

The company was in operation for up to a decade and had 120 jobs at its peak, leading to largescale builder BAM to buy Modern Homes Ireland in recent years.

Modern Homes Ireland was involved in the delivery of the State’s modular housing programme for Ukrainian accommodation site. Those schemes drew criticism due to the significant costs involved, with each modular house seeing its costs double to €442,000 and drawing the attention of the Comptroller and auditor General at the Dáil’s Public Accounts committee.

Industry sources said the company had seen greater stream of work through the need to build modular homes to cope with the Ukrainian accommodation crisis, but those larger scale State-backed projects concluded earlier this year. Orders are understood have largely dried up aside from those projects.

Modular housing is built in sections off-site such as the Ballyjamesduff production plant and pieced together on location.

In 2019, BAM, the construction company that is involved in the construction of the National Children’s Hospital, became involved with MHI.

In a statement on behalf MHI Modern Homes Ireland, a spokesperson told The Journal that staff were informed of the decision this week.

“MHI Modern Homes Ireland Limited has regretfully informed employees that it has closed its factory in Ballyjamesduff with immediate effect,” the spokesperson said.

The company will continue to deliver on any of its existing projects.

“While no final decision has been taken about the company’s operations, the closure of the production plant is due to the sustained low levels of activity in the Irish residential property market and the resulting lack of forward order book.”

The spokesperson added that the company has now entered a period of consultation with employee representatives in line with legal requirements.

Employees will remain on paid leave during this consultation period.

Reacting to the news, Social Democrats housing spokesperson Rory Hearne said the idea that a company that could provide hundreds of homes a year was set to close because of a “lack of orders” was shocking.

He appealed to the Government to use the Land Development Agency and “step in and buy the factory” so that it could be kept open to deliver homes.