THE future of the Asahi plant in Co Mayo, which employs 320 people, looked to be secure yesterday following a breakthrough in talks between company representatives and development agencies in Dublin.
It is understood that a multi million pound management buyout has been hacked by parties to the discussions. Proposals for a restructuring of the loss making synthetic fibre manufacturing plant in Killala are to be considered by the board of the Japanese parent company and the boards of IDA Ireland and Forbairt. The deal has also to be put to a number of new investors.
Management from Asahi's Irish operations were also party to the talks, while the Minister for Enterprise and Employment, Mr Bruton, was closely involved. He told the Dail that the breakthrough meant there was "a very positive outlook for the future of the plant".
Talks had been ongoing for months with a view to securing its future, he confirmed. This was against a background of significant losses at Asahi's Irish plant due to difficult global market conditions. These had caused the parent company to examine its worldwide operations.
On Tuesday, Mr Bruton had met senior Asahi management when he "expressed the Government's concern" for the plant's future. Arising from that meeting "intensive, difficult and complex discussions took place with both local and parent company management". The proposals are to be put to respective boards within a month.
Workers at the plant welcomed the announcement but had earlier criticised the cavalier way they were being treated in relation to any possible restructuring or takeover.
Irish management was not available for comment. This included the managing director of Asahi's Irish operations, Mr Michael Honan. It is anticipated he would be involved in the new operation should it be ratified.
SIPTU branch secretary, Mrs Noel Kilfeather confirmed that workers had raised concerns when there was some internal indication of difficulties in February. They had received an undertaking that any information about any possible rationalisation would be made available to them in advance of any action.
Some financial details of the loss making plant had been given to them, which they were "not entirely happy with". They had sought clarification and were due to meet management later this month.
The difficulties were retrievable, if these involved were willing to find a solution, Mr Kilfeather said. The "somewhat shameful" way workers were being treated, however, had not helped matters. SIPTU was not aware of any impending management buyout. "It looks as if we're going to be fed on a `need to know basis'. We expect to rectify that."
Ballina based businessman Mr Sean Hanpick, who was instrumental in bringing Asahi to Ireland 20 years ago, said the plant was the backbone of the local economy. It was generating up to £10 million annually in terms of wages and services - at one point, it employed more than 500 people manufacturing acrylics.
He understood the plant made a profit for a number of years and that losses were never in the "major" category. "I'm hopeful that its future can be secured. I've every confidence in the management and workers and that a proper restructuring will emerge."
