This approval marks a crucial step towards securing a new owner for Wellman International's Ireland-based operation while preserving as much employment as possible within the region.
“Indorama Ventures is very grateful for everyone’s efforts in this examinership process, which has helped to manage a difficult situation successfully and achieve the best possible outcome for employees, customers, business partners, and the local community,” the company said in a statement.
Wellman International, which specialises in the production of recycled polyester fibres from used plastic materials, has faced severe financial challenges.
The company reported double-digit million losses across 2023 and 2024, attributed to soaring energy prices amid geopolitical tensions and stiff competition from imports originating from China, Africa, and the Middle East.
Despite these setbacks, the board remained optimistic about the future potential of the operation and opted for examinership, a process designed to facilitate the restructuring and survival of financially troubled companies.
An interim examiner, Kieran Wallace of Interpath Advisory, was appointed in June this year to spearhead negotiations with stakeholders and formulate a viable survival scheme.
The court's approval indicates that the efforts by management and the examiner have been fruitful.
At the time of appointing the examiner, Wellman International director Anthony Troy said: “For more than two years, management has taken action to cope with the situation. Unfortunately, these measures have not proved sufficient to overcome the challenges we are facing.
“We want to do everything we can to enable the operation to continue in business and retain as much employment as possible. Examinership gives us the best prospect of doing that. It is important, however, that we acknowledge that there is the potential for a reduction in our headcount as part of this process.”
The Mullagh factory is known for its contribution to various industrial sectors in Ireland, including automotive, home furnishings, leisure, and hygiene, through its recycled polyester products.
Indorama Ventures acquired Wellman International's recycling business in 2011 to address the rising demand for the recycling of post-consumer products.
With the High Court's nod, management will now proceed with all necessary steps to finalise the process.
This includes issuing new shares to UG World as the new investor, signifying a new chapter for Wellman International and its employees.
