Management at former Greencore subsidiary Interchem has decided to carry on trading following the food group's decision to quit the business earlier this month.

A spokeswoman for Greencore said it had ceased trading at Interchem because the agrichemical company had supported its two former sugar beet processing factories at Mallow and Carlow, which were shut down in 2005 following the EU's restructuring of the sugar industry.

However, Pat O'Callaghan, who was a manager at Interchem for 15 years, has decided that parts of the company are viable entities. He took on the business on June 12th.

Interchem will focus on distributing crop protection chemicals and selling animal health products to vets.

Mr O'Callaghan will be joint managing director of Interchem (Ireland) alongside Gerard Perry, a chartered accountant who will be responsible for the financial and administrative sides of the business.

The new private limited company will initially employ 12 people, but it said it planned to expand both its workforce and product ranges in the next few years.

It will continue to be based out of Cherry Orchard industrial estate.

The Greencore spokeswoman said the company had been a very modest part of the group and that its exit had been inevitable following the shutting down of its domestic sugar operations.

Incorporated in 1966, Interchem was acquired by Irish Sugar two years later and became a wholly owned subsidiary of Greencore in 1991.