GALWAY-BASED manufacturer CF Tooling has conditionally agreed to purchase the business and assets of Iralco for an undisclosed consideration.
Iralco, which employs about 400 people, went into liquidation in April, despite having plenty of orders on its books. The Westmeath-based plant produces components for some of Europe's best-known car manufacturers, including Audi, BMW, Ford, Seat, Volvo and Jaguar. "We have now reached an agreement with CF Tooling which lays the foundation to secure the majority of the jobs," said liquidator John McStay.
Mr McStay said the agreement was critically dependent upon a number of matters being resolved. Chief among these was a need to reduce operating costs to a level which allowed the business to trade profitably, he said. This would involve securing some redundancies on a voluntary basis and changes to work practices.
"Without these two elements there is, in my opinion, no alternative way to secure the future of the business and the employment," said Mr McStay. He also said the future of the plant would depend on securing the final commitment of the company's customers in respect of future orders.
To secure that commitment, he said it was necessary that discussions with the workforce on voluntary redundancies and changes in work practices be concluded without delay.
"While the customers have been supportive, they have of necessity been seeking to secure alternative sources of supply. It is unrealistic to expect them to delay putting those alternatives into place if we are seen not to act quickly now that a buyer has been secured," said Mr McStay.
CF Tooling, a specialist tool-design and manufacturing company, was established by Michael Carr and Johnny Flaherty in 1989.
Sales revenue for the Athenry company has grown steadily over the past five years and turnover in 2007 reached $100 million (€64 million) internationally.
It employs 984 people worldwide and includes multinational firms IBM, EMC, APC, Ingersoll Rand, Glen Dimplex, Sanyo and Hitachi Koki among its clients.
