Wellman International has announced that around 54 jobs are expected to be lost at its manufacturing and recycling business in Mullagh, Co Cavan.
The company, which currently employs 215 people, filed a petition with the High Court in June to place its operation in Mullagh into examinership.
It is understood that management held meetings with union representatives and employees today at which the job cuts and future plans for the company were announced.
Wellman International has said it has received “strong interest” from an investor that is interested in potentially purchasing the business.
However, the company has said that it will have to address its “unsustainable” financial position if an investor is to purchase its operation in Mullagh.
Wellman International has said that it expects around 54 roles to be affected by this process and it will liaise directly with those impacted and their representatives.
The company added that in order to conclude any successful examinership and avoid a scenario whereby the business would be placed into liquidation, the approval of the High Court will be needed.
Wellman International manufactures recycled polyester fibres from used plastic materials that have a wide variety of industrial uses, including in the automotive, home, leisure and hygiene sectors.
However, the company previously said the business had suffered losses in the double-digit millions in 2023 and 2024, resulting from increased energy prices following “geopolitical conflicts and fierce competition from low-priced imports from China, Africa and Middle East”.
As a result, its parent company, Indorama Ventures, withdrew its support.
In a statement issued this evening, a spokesperson for Wellman International provided an update on the subsequent examinership process.
The spokesperson said: “Together with the examiner we continue to do everything we can to deliver a successful examinership that preserves as much employment as possible. We can confirm that we have received strong interest from an investor that is interested in potentially purchasing the business.
“However, in order to conclude a successful examinership, a number of further steps need to be undertaken. Our financial position remains unsustainable, and this has to be addressed before any investor would finalise an agreement to purchase the operation. To give us the best opportunity to conclude a successful examinership, and avoid the alternative scenario where the company would be placed into liquidation and operations ceased, a restructuring of the business is necessary.”
The statement goes on to say: “We are deeply aware of the impact that this restructuring will have on impacted employees, and regret the uncertainty that this will cause for them and their families.
“We expect approximately 54 roles to be affected by the process and we will liaise directly with those impacted and their representatives. It remains the case that any scheme of arrangement prepared by the examiner will need to be approved by the High Court and a sufficient quantity of the company’s creditors before a successful examinership can be concluded.”
Wellman International began operations in Mullagh in March 1973.
The site, which was acquired by Indorama Ventures in 2011, is the largest European producer of recycled polyester fibres.
Indorama Ventures is listed in Thailand and is a petrochemicals producer, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific.
The Cavan-based arm of the company carries out manufacturing in Ireland but principally does its business in the rest of Europe.
