High Court approves survival scheme for Wellman in Mullagh

The High Court last week approved the examiner’s scheme of arrangement for the survival of Wellman International, marking a significant step forward in securing the future of the Mullagh-based manufacturer.

The decision was handed down on Tuesday, September 23, and the approval clears the way for the sale of Wellman to new investor UG World Ltd, a London-based green-tech firm.

UG World Ltd will now assume ownership of the business through the issue of new shares, allowing Wellman to exit examinership and continue operations.

“Wellman International is very grateful for everyone’s efforts in this examinership process, which have helped to manage a difficult situation successfully and achieve the best possible outcome for employees, customers, business partners, and the local community,” a spokesperson for Wellman International said.

Parent company Indorama Ventures, which acquired Wellman in 2011, had stated its goal was to find a new owner and preserve as much employment as possible.

The necessary restructuring - resulting in approximately 54 job cuts was achieved voluntarily, with no compulsory redundancies.

Wellman entered examinership in early June after suffering significant financial losses in both 2023 and 2024. Indorama subsequently withdrew financial support from the business, prompting the need for court protection and the appointment of examiner Kieran Wallace of Interpath Advisory.

The proposed rescue plan, backed by creditors earlier this month, includes a multi-million-euro investment by UG World Ltd.

The transaction, the Celt understands, will be completed in two stages, and exceed €10M in value.

Had the proposed deal not been approved by the court, Wellman, Europe’s largest producer of recycled polyester fibre and a fixture in Mullagh since 1973, would have faced liquidation.