Wellman sale gets approval
54 jobs to go at local plant
A proposal that Mullagh-based manufacturer Wellman International be sold to a new investor, UG World Ltd, has been approved by creditors and will now be presented to the High Court.
It is the first major step in series that must be taken by the local business in the process of attempting to exit examinership.
Wellman entered examinership in back in early June having incurred double-digit million-euro losses in both 2023 and 2024 and after its parent company, Indorama Ventures, which bought Wellmans in 2011, withdrew further financial support.
The court appointed examiner Kieran Wallace of Interpath Advisory and Wellman management met with creditors on Tuesday to present details of an agreed multi-million-euro rescue package put forward by London green-tech firm, UG World.
The examinership process had been due to conclude September 11.
The sale element, with payment done in two parts, will eventually reach a consideration in excess of €10 million, the Celt understands.
However, as a result of required restructuring, approximately 54 jobs are set to be cut at the plant. Wellmans, which has operated in Mullagh since 1973 and remains the largest producer of recycled polyester fibre in Europe, would have been placed into liquidation had the deal put forward been rejected.
The planned redundancies are expected place to be implemented between the end of September and early October, with voluntary redundancy also offered to all employees at the company's discretion.
A spokesperson for Wellman confirmed meeting between Mr Wallace and the company's creditors had taken place, proposing that Wellman be sold to UG World Ltd, a London green-tech firm.
“Together with the examiner we continue to do everything we can to deliver a successful examinership that preserves as much employment as possible and enables the operation to continue to serve customers,” said the spokesperson, adding that the scheme put forward “was approved by a sufficient quantity of creditors”.
It will now be presented to the High Court for final approval, however the Wellman spokesperson added that a “number of further steps” need to be undertaken to successfully complete the examinership process.
“It would be inappropriate to comment further at this point in time.”