7 days ago
Job cut fears as Cavan's Wellman International to enter examinership
There are fears over possible job cuts at Wellman International after it filed a petition with the High Court to place its operation in Mullagh, Co Cavan into examinership.
Wellman International employs 217 people and is the largest European producer of recycled polyester fibres.
It began operations in Mullagh in March 1973 and the site was acquired by Indorama Ventures in 2011.
The company said Wellman 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," the company said in a statement.
Kieran Wallace of Interpath Advisory has been appointed as interim examiner and will engage with all stakeholders.
If his appointment is confirmed by the High Court, he will continue efforts to devise a workable survival scheme.
Anthony Troy, director at Wellman International, said that while examinership gives the company the best prospect of retaining as much employment as possible, it is important to acknowledge that there is the potential for a reduction in headcount as part of the process.
"This decision is no reflection on the hard work and commitment of our employees in Mullagh," Mr Troy said.
"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," he added.
The Mullagh factory manufactures recycled polyester fibres from used plastic materials.
The fibres have a wide variety of industrial uses including in the automotive, home, leisure and hygiene sectors.
Indorama Ventures is listed in Thailand is a petrochemicals producer, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific.
