Job losses as part of exit of examinership
47 jobs are set to be lost at the Premier Periclase plant in Drogheda after a survival scheme was approved at the High Court to allow the facility to exit examinership.
The Boyne Road based company that makes magnesium-based heat-resistant products was granted the protection of the court last year as it required a large amount of gas to generate the energy it needs to make its products.
Neil Hughes of Dublin-based Baker Tilly was appointed examiner to the company on December 16th last year by the High Court.
The plant requires a large amount of gas to generate the energy it needs to make its products, and the court had previously heard the factory owed Bord Gáis €2.5m and electricity supplier Energia €900,000.
The company, which employs 94 people, will receive fresh investment, and under the terms of the rescue plan, will see a move away from using natural gas to more renewable energy sources over the next year and a half.
Speaking on LMFM, the plan was given a cautious welcome by Willie Quigley, Regional Officer of Unite, the union which represents the workers, given that jobs will be lost.
“The survival of the plant was the main objective...but the sad part of all of this is half of the work force is losing their jobs,” he commented. “However, if the new owners do as they presented to the court, there is the potential for an increase in 18 months or so.”
Premier Periclase has operated at Boyne Road, Drogheda, since 1977 and has business origins dating back to the 1930s.
In February, a c35.63 acre (14.42 hectare) land bank belonging to the beleaguered firm Premier Periclase was brought to the market by REA Grimes, with a guide price of €4m or €112,265 per acre.