Role of Local Authorities in enabling Economic Development:The Waterford Crystal StoryThe Waterford Crystal Story

Michael Walsh

Waterford City Council

History of Glass Making in Waterford City – Phase 1

• 1783 Penrose Bros establish glass works, employing 50-70

• 1830s – Irish glass industry in terminal decline

• 1851 – Waterford glass • 1851 – Waterford glass exhibited at Great Exhibition, Crystal Palace

• Waterford established as a quality brand and collectors item

• 1851 –Waterford glass closes - unable to attract capital investment

1851 Great Exhibition, London

History of Glass Making in Waterford City – Phase 2

• 1947 – Charles Bacik establishes new facility in Ballytruckle on site provided by Waterford Corporation

Ballytruckle Manufacturing Corporation

• 1950 – Irish Glass Bottle Co Ltd takes over and builds new facility in Johnstown

• Waterford Crystal exported to America, Great Britain, Bermuda and New Zealand

Ballytruckle Manufacturing Facility

History of Glass Making in Waterford City – Phase 2

• 1962 – 600 employees

• 1967 – Kilbarry factory opened – 40 acre site

– 2,000 employees– 2,000 employees

• 1971 – Dungarvan plant opens

Waterford Crystal

• 1987 – Waterford Crystal and Wedgewood merger

• At its peak:• At its peak:– 3,000+ employed

– 380,000 visitors

– Leading tourist attraction

Waterford Crystal, Cork Road

Waterford Crystal – End of an Era

• 1990s –outsourcing commences

• 2000 onwards– Job losses

– Short time

– Pay freezes

• 2009 closure– 800 direct job losses

– Impact on local economy

– Threat to tourism market

– Receiver appointed

Scenes following the closure

Salvage from the Wreckage

• 2009 – Local stakeholders group established to find a solution – ‘Fewer Group’

• Non Prestige • Non Prestige Manufacturing no longer viable

• Full range of options explored

• Venture capitalists (KPS) acquire WWRD brand

Salvage from the Wreckage

• Solution identified– City centre location for combined manufacturing, visitor and retail to ensure sustainabilitysustainability

– Prestige manufacturing

– Tourism as an economic driver

– Catalyst for city centre regeneration in tandem with ‘Viking Triangle’

– State investment necessary

House of Waterford Crystal Before renovations

Salvage from the Wreckage

• The process– 2009 tender for capital works

– Refurbishment former ESB to house HOWC and Civic offices

– Refurbishment of Bond Store for manufacturing facility

– Refurbishment of Bond Store for manufacturing facility

– Car park works to accommodate coach parking

– Project completed on time and on budget

• June 23rd 2010 House of Waterford Crystal flagship showrooms officially opened

House of Waterford Crystal

Official Opening

Salvage from the Wreckage

• Other positives

– 188 currently employed by HOWC

– 200 jobs created during construction phase

– New landmark building for – New landmark building for Waterford City

– Retention of Waterford Crystal brand will contribute to tourism as an economic driver

– Stakeholders working together and ‘doing it for themselves’

• Project funding– WCC €10.7m

– ERDF €2.7m

– Fáilte Ireland €0.75m

– Total Funding €14.2m

The Viking Triangle

• Master Plan developed– Bishop’s Palace completed June 2011

– Chorister’s Hall – Chorister’s Hall opening Summer 2012

– Cathedral Square premises acquired

– Relocation of Tourist Office

– CEO to be appointed

1,000 years of history in 1,000 paces

Why?

• Protect Brand Waterford and City Heritage

• Historical role

• No one else could

– Tourism as an economic driver– Tourism as an economic driver

– Enhancing City’s reputation

• Evolving role of the local authority

– Economic Promotion

– Business Support Units