Dáil Éireann díospóireacht -
Wednesday, 23 Apr 1997

Vol. 478 No. 2

Written Answers. - Tullamore (Offaly) Plant Closure.

Pat Gallagher

Ceist:

129 Mr. Gallagher (Laoighis-Offaly) asked the Minister for Enterprise and Employment his views on the threatened closure of and resulting job losses at Atlantic Mills, Tullamore, County Offaly; the efforts, if any, he is making to find an alternative buyer or replacement industry for the plant; and if he will make a statement on the matter.[10814/97]

Minister for Enterprise and Employment (Mr. R. Bruton):

I am naturally disappointed that Atlantic Mills has decided to cease cotton yarn spinning in Tullamore. I am aware, from my discussions with the joint Dutch and French owners that the decision was dictated by economic considerations.

Atlantic Mills have signified that it has been experiencing significant losses over the past two years, due to strong global competition from lower cost producers, and falling prices on world markets for denim, the company's end product. It was against this background that Atlantic Mills decided to dispose of its Tullamore spinning facility and source its cotton yarn requirements from competitive world market producers.

The owners of Atlantic Mills are keen that the Tullamore plant could be sold as a going concern. I have asked IDA Ireland to liaise closely with the company with a view to finding a suitable take-over client. These efforts are being actively pursued and I understand that a number of contacts have already been made in this regard.

While the IDA is placing emphasis on finding a buyer for the Tullamore operation, it also plans, as a fall-back position, to work with the other development agencies towards finding an alternative industry which would best match the skills of the Tullamore workforce.