The Longford-based textile company, Atlantic Mills, has said its purchase of the speciality denim business of German group Hof for an undisclosed sum should secure the future of the plant.
Atlantic Mills, which employs almost 200 people, is owned by the Dutch group, Royal Ten Cate, and has suffered net losses of £10 million over the last decade. Last September, the company laid off 100 people as part of a restructuring plan.
It says the purchase of Hof's speciality denim business will add £5 million to its annual turnover of £33.5 million. Hof's speciality denim business will be integrated into the Atlantic Mills plant at Clondra, Co Longford.
Atlantic Mills will have sole rights over Hof's denim collection and will now operate its sales network in Europe and elsewhere.
"This deal gives us the chance to replace some loss leaders with profitable and popular denim lines which have a track record behind them," said the division manager for Atlantic Mills, Mr Frank O'Reilly.
"The plant has been in operation for 19 years and this strategic action will add significant diversification to our product mix, thus opening new markets and providing new opportunities," he added.
No additional jobs will result from the deal, but extra production will be generated, helping to secure the 200 jobs currently at the plant, says the company.
