54 Jobs to go at Wellman

Rescue package presented Monday

Approximately 54 jobs are to go at Wellman International as part of a major restructuring being set out ahead of a crucial creditors' meeting next week.

The appointed examiner Kieran Wallace of Interpath Advisory and Wellman management will meet creditors on Tuesday, September 9, to present details of an agreed multi-million-euro rescue package by London green-tech firm, UG World.

The sale element, with payment in two parts, is in excess of €10M, the Celt understands.

Incorporated in November 2023, UG World is a private limited company. It has a listed turnover of less than £1M and five employees including two registered officers - British national Magnus Hammick and Bulgarian Toshko Botev.

Both are listed as environmentalists and Hammick remains an officer of another UK registered company - Green Biofuels Limited. Botev was meanwhile previously linked as commercial director at the same wholesaler of petroleum and petroleum products, which slipped into administration in October 2023.

If accepted, the UG World offer will go before the High Court for final approval.

UG World emerged as the frontrunner in acquiring Wellman last month, and, if approved, it's hoped to secure the long-term future of the local manufacturing operation by expanding to European markets through further investment.

If rejected, Wellmans, which has operated in Mullagh since 1973, will be placed into liquidation.

The statutory examinership process is due to conclude on September 11.

If there is support for the proposed deal, redundancies are expected to be implemented between the end of September and early October, with voluntary redundancy also offered to all employees at the company's discretion.

Last Thursday saw meetings take place with staff representatives and six unions at the site, followed by a full staff meeting with management in the mid-afternoon.

The company currently employs 215 people at Rosehill. It entered examinership in early June having incurred double-digit million-euro losses in both 2023 and 2024.

Those losses have been blamed on surging energy costs, exacerbated by geopolitical conflicts, alongside increasing pressure from lower-cost international competitors, particularly China, Africa, and the Middle East.

The challenges led to parent company Indorama Ventures, which bought Wellmans in 2011, to withdraw financial support and petition for the appointment of an examiner.

The Wellman site is the largest producer of recycled polyester fibres in Europe and, at its peak, processed approximately 4.5 billion plastic bottles per year, generating around 85,000 tonnes of recycled polyester fibre. In recent years, output though has declined significantly, despite a major investment in a next generation recycling unit during the pandemic.

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

“Together with the examiner we continue to do everything we can to deliver a successful examinership that preserves as much employment as possible.”

The job losses, management say, are necessary to stabilise operations to get the sale across the line.

"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," reads the statement.

The Wellman spokesperson confirmed that approximately 54 roles will be affected by the process. "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.”