Irish Fertilizer Industries to stop production at three plants

Irish Fertilizer Industries will halt production at its three plants for four weeks in response to falling sales. The company, which employs 620 staff and is 51 per cent owned by the Government, has been badly hit by the foot-and-mouth crisis and the high price of natural gas, one of the main raw materials for fertiliser production.

IFI now plans to bring forward major maintenance projects that had been scheduled for next year at its plants in Cork, Arklow and Belfast. The overhauls - which could be carried out in 10 days - will be spread over four weeks instead. Several statutory inspections due next year will also be carried out during the period, according to sources close to the company.

The work will be carried out by the company itself rather than by the normal outside contractors.

As a result none of the company's staff will be laid off during the shutdown and will instead be redeployed on the maintenance work, according to company sources.

A SIPTU spokesman in Cork, where the largest of the fertiliser plants is located, said yesterday the union was unaware of any plans to shut the plants.

The last communication the union had received from the company was in July when it was told the group's trading position had improved and that the company would be able to pay increases due under the Partnership for Prosperity and Fairness.

IFI is a joint venture between the state-owned Nitrigin ╔ireann Teoranta and ICI, the British chemicals group which owns the other 49 per cent of the company.

Set up in 1987, IFI operates the former NET plants in the Republic and ICI's factory in Belfast.

The company has struggled to make consistent profits in recent years and lost £11.3 million on a turnover of £139.6 million in the year to the end of September 2000. This compares to a profit of £3.8 million on a turnover of £140 million the previous year.

IFI has around 40 per cent of the Irish market and is one of the 10 largest fertiliser manufacturers in Europe. Sales in the current year have been hit by foot-and-mouth which severely restricted the company's ability to distribute its products earlier this year.

The decision to stop production for four weeks is a response to the continued fall off in sales and the company is hopeful that it will be able to reduce its stocks of fertiliser. Most of IFI's competitors have taken or are contemplating similar action according to IFI sources.

The Government and ICI have made several attempts to sell IFI, most recently in 1999. Several groups expressed interest including the Galway businessman Mr Declan Ganley and IAWS, the agribusiness group, but no sale was concluded.

The company has been quietly on the market since then but serious bidders have been few and far between. The Government is not directly represented on the board of IFI, but the fertiliser company shares its chairman, the Cork accountant Mr Niall Welch, with NET.