Dáil Éireann debate -
Tuesday, 15 Oct 1996

Vol. 470 No. 1

Adjournment Debate. - Sale of Ballyfermot (Dublin) Plant.

Mr. T. Kitt

I thank the Minister for coming into the House to deal with this issue. What progress has been made in relation to a potential purchaser for the Semperit Plant following the visit of the Minister for Enterprise and Employment to the US recently? We would all agree that every effort should be made to save the 650 jobs at this plant. My understanding is that there are two potential purchasers, Cooper US and Kumho Company in Korea. It is unfair of Continental AG to close this plant by 6 December. Representatives of the workforce have sought a three-month extension and it should be granted. If a viable concern is to take over the plant, time is required. I call on Continental AG, the parent company, to demonstrate publicly its sincerity and that it wants to save these valuable jobs by agreeing to a three month extension on the closure date.

I ask the Minister of State and the Minister for Enterprise and Employment to undertake a visit to the Kumho Company in Korea to demonstrate the Government's interest in its purchase of this plant. It goes without saying that a strong lobby by an Irish Government Minister has added significance in that part of the world. No stone should be left unturned by the Government in endeavouring to attract a purchaser who would save the jobs of the 650 workers.

I stress the importance of ensuring that a potential global competitor of Continental AG is not excluded from purchasing this factory. It has been said that the Korean company, Kumho, would fall into this category. I seek an absolute assurance from the Minister that he has got a guarantee from the Semperit parent company that it will not veto such a competitor coming into Ireland and purchasing this plant. This is a central issue in this debate.

The Minister needs to be up front on this point and if he has any concerns or doubts he should spell them out. A fallback option would be an employee buyout. This option should not be ruled out and should be assisted by the Department if all else fails. A feasibility study is being carried out with State aid and I support this approach. These jobs in Semperit are extremely valuable, not only for the individuals but also for their families, the local community and businesses and individuals whose livelihoods are connected to and dependent on this major enterprise. There is much at stake and I ask the Minister to maximise his efforts and those of the IDA and other relevant agencies in the coming weeks and months to ensure that these people can continue to work in their community and that the company can continue to grow and develop within the EU into the next century.

Mr. Rabbitte

I thank Deputy Kitt for raising this matter. During his recent visit to the United States the Minister for Enterprise and Employment, Deputy Bruton, was able to have extensive discussions with senior executives of a major tyre manufacturer. The IDA had already made contact with the company which has visited and inspected the plant at Ballyfermot. The company has confirmed that it is interested in acquiring a production plant in Europe and that it has a preference for an acquisition rather than a green field development. It has agreed to visit the Semperit plant again as soon as prior travel commitments will permit and has indicated that this will be around mid-November. As I already told the unions at Semperit, this company is not interested in acquiring the plant as a going concern and any acquisition would take place after liquidation.

During our discussions the company representatives signalled a number of difficulties foreseen in relation to a takeover. Chief among these would be the absence of established brands and markets. It pointed out that it would take five years to fully establish new markets. It also regards labour costs at Semperit as high. I understand the company is in communication with the Semperit management and that a number of issues raised by it are being addressed.

The IDA has carried out an intensive marketing programme of the Semperit plant and, to this end, all leading tyre companies worldwide have been contacted. A Korean company has also expressed an interest in the Semperit plant. The IDA is engaged in intensive follow-up contact with both prospective purchasers and with Semperit and Continental in an effort to arrange site visits and to facilitate and encourage communications between the parties. The Deputy may be assured that the IDA and I are making every effort possible to ensure that the maximum number of jobs at the plant are saved through arranging a suitable sale. I understand that a financial adviser is to travel from Dublin this evening to visit Continental to assist in making arrangements for preliminary discussions on a sale, should that be possible. To ensure a future for Semperit at Ballyfermot, the present situation requires not only a willing purchaser but also a willing seller. I am sure Deputies on all sides of the House will join me in encouraging the parent company, Continental, to facilitate the work in hands in the effort to effect a sale for the plant at Ballyfermot.