THERMAL Heat Exchangers (Irl), the Drogheda-based manufacturer of coil heat exchangers for refrigerators and air conditioning, which employs 204 people, has gone into examinership.

The interim examiner, Mr Rory O'Ferrall of Deloitte & Touche, told The Irish Times the company would continue to trade as usual, but there was a need to "address specific problems", notably work practices.

He had a series of meetings yesterday and these included talks with SIPTU representatives and IDA officials.

There had been "no history of industrial disharmony" but he stressed that "changes in the market place" had a significant impact on the company".

These, he added, necessitate changes in work practices.

Thermal, he said, is a "well established" group with an up-to-date plant.

The prospects for a reorganisation were "quite good" and this might involve new investors.

The company is understood to have plenty of orders on hand but needs to reduce costs to bring it back into profits.

Set up by an Italian group in 1978, it was sold to the German Thermal group in 1984. The German group was transferred into private German ownership in October 1995.

The Irish subsidiary generates annual sales of some Pounds 10 million.

Most go to Germany and Britain. A small proportion is generated in the domestic market. Sales have been static and the group started to record losses in the past year.

These losses are understood to have been substantial.

As the parent company has also experienced difficult trading conditions, it might not be willing to continue funding the losses, according to an industry source.

There was no "specific pressure" from creditors to go into examinership, Mr O'Ferrall said. There are about 100 creditors.