54 jobs expected to go at Wellman

The examinership process is expected to conclude by September 11

Approximately 54 jobs are set to be cut as part of a major restructuring effort under ongoing examinership proceedings at Wellman International.

The company, which employs 215 people at its Rosehill plant, entered examinership in back in early June after incurring double-digit million-euro losses in both 2023 and 2024.

The job losses were announced yesterday evening (Thursday, August 28) following meetings between company management, union representatives, and staff.

The proposed cuts come as Wellman moves closer to finalising a potential multi-million-euro rescue deal with London-based green-tech investment firm UG World.

Wellman’s losses have been attributed to surging energy costs, which have been exacerbated by geopolitical conflicts, alongside increasing pressure from lower-cost international competitors, particularly from China, Africa, and the Middle East. These challenges led to parent company, Thai-based Indorama Ventures, withdrawing financial support from the business and petition to the High Court to enter examinership where Kieran Wallace of Interpath Advisory was appointed to stabilise Wellman's financial position.

The examinership process is expected to conclude by September 11, pending High Court approval and creditor support for any proposed scheme.

In a statement, Wellman said the restructuring was necessary to avoid liquidation and expressed regret for the impact on affected workers and their families.

The company also confirmed that it will continue to work closely with those impacted and their representatives.

“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.”

They add that the company's current “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 Wellman spokesperson concluded by saying: “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.”

If the rescue plan is approved, it is expected to secure the long-term future of the Mullagh operation and expand its access to European markets for its recycled PET plastic fibre products.

Wellman International has operated in Mullagh since 1973 and remains the largest producer of recycled polyester fibre in Europe.