Dozens of jobs to go at Modern Homes Ireland

Children's hospital contractor BAM shuts Bally'duff MHI factory

Dozens of jobs are to be lost following the abrupt closure of the Modern Homes Ireland modular housing facility in Ballyjamesduff on Wednesday (October 16), with “sustained low levels of activity” in the Irish residential property market and a lack of future orders blamed for the decision.

Employees were informed of the shutdown during a meeting at the Oldcastle Road manufacturing, in a move that has sent shockwaves through the local community.

MHI, once seen as a key player in delivering off-site housing solutions to speed up residential construction, was founded in 2015, enabling up to 80 percent of a new home to be built off-site- reducing construction times, labour dependency, and delays due to weather.

Over the past decade, the company says it has delivered around 950 homes and 15,000 modular components, contributing significantly to housing developments in Wexford, Dublin, and Meath.

Dutch construction giant BAM- the main contractor for the National Children’s Hospital- acquired a non-controlling stake in MHI in 2019, when the stated ambition was scale the Cavan company to meet growing demand for rapid-build homes.

This was followed by a full acquisition in the years that followed.

At its height, MHI employed around 120 people. However, staffing levels had since dwindled considerably to just 20 full-time employees, with a further 50 believed to be engaged through subcontracting arrangements.

In a statement, MHI confirmed the immediate closure of the Ballyjamesduff factory, attributing the move to too few of incoming orders.

The company says it had now entered a consultation period with employees, in line with legal requirements, and that workers will remain on paid leave during this time.

“MHI Modern Homes Ireland Limited has regretfully informed employees that it has closed its factory in Ballyjamesduff with immediate effect,” the MHI company statement read. “While no final decision has been made regarding the company’s operations overall, the closure of the production plant is due to sustained low levels of activity in the Irish residential property market and the resulting lack of forward order book.”

The spokesperson stated that MHI has “now entered a period of consultation with employee representatives in line with legal requirements. During this consultation period, employees will remain on paid leave. MHI will continue to deliver its existing projects and is committed to ensuring the process is handled with fairness, transparency, and respect for all those affected.”

The announcement has sparked concern at a local level.

Fine Gael councillor Trevor Smith described the decision as “a hammer blow” for workers and their families.

“This will have a big impact on the town, particularly on younger families with mortgages,” he said. Smith also questioned BAM’s stewardship of MHI since 2019, noting the shift from direct employment to subcontracting and suggesting that the company’s original vision had been diluted over time.