Over 50 job losses have been announced at recycling company Wellman International in Mullagh.
There was fears that as many as 215 jobs could have been lost at the Cavan facility.
The operation went into examinership back in early June.
The recycling company has been an employer in the region, for more than over 50 years.
The company said the business has suffered losses in the double-digit millions in 2023 and 2024, resulting from increased energy prices.
The company located in Rosehill,Mullagh is the largest European producer of recycled polyester fibres.
In a statement issued by Wellman International this evening, they said together with the examiner they continue to do everything that we can to deliver a successful examinership that preserves as much employment as possible.
They confirmed that they have received strong interest from an investor that is interested in potentially purchasing the business.
However, in order to conclude a successful examinership a restructuring of the business is now necessary.
The statement went on to say that 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.
Wellman International statement have issued the following statement this evening.
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.
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.
