-- Wellman International Limited, an Indorama Ventures company, has filed a petition with the High Court to place its operation in Mullagh, Co. Cavan, into examinership.
The business has seen losses in the double-digit millions across 2023 and 2024, resulting from increased energy prices following geopolitical conflicts and fierce competition from low-priced imports from China, Africa and Middle East.
Nevertheless, the board believes that the operation does have a potential future and accordingly has elected to apply for examinership. An interim examiner, Mr Kieran Wallace of Interpath Advisory, has now been appointed to engage with all stakeholders and, if his appointment is confirmed by the High Court, he will continue efforts to devise a workable survival scheme.
Anthony Troy, director, Wellman International, said: “This decision is no reflection on the hard work and commitment of our employees in Mullagh. We are aware of the uncertainty and concern this will cause for our people as we attempt to secure the survival of the company.
For more than two years, management has taken action to cope with the situation. Unfortunately, these measures have not proved sufficient to overcome the challenges we are facing. We want to do everything we can to enable the operation to continue in business and retain as much employment as possible. Examinership gives us the best prospect of doing that. It is important, however, that we acknowledge that there is the potential for a reduction in our headcount as part of this process.”
The Mullagh factory manufactures recycled polyester fibres from used plastic materials. These fibres have a wide variety of industrial uses including in the automotive, home, leisure and hygiene sectors.
