Talks with potential investors in the Thermal Heat Exchangers plant at Drogheda are expected to begin immediately, following a vote by the workforce to accept drastic cost cuts. As a result, hopes are now high that 140 of the 205 jobs at the plant can be saved. Last night, the workforce voted by 115 to 48 to accept a longer working week, reduced overtime earnings, a pay freeze and up to 60 redundancies in order to keep one of the town's largest employers in business. SIPTU members voted 89 to 48 for the proposals and 26 non-union employees voted for them unanimously. A week ago the workforce rejected the terms. However, with the threatened closure of the plant by the receiver next Friday, a series of information meetings took place at which the SIPTU branch secretary, Mr Michael Walsh, and shop stewards argued strongly for acceptance of the plan as the best long-term hope of saving jobs. After the ballot, Mr Walsh expressed himself "delighted. We have saved 140 jobs for the town and, with a bit of luck, the number will rise again to 205". The managing director of the company, Mr Kevin Kidney, believes the total savings from wages, redundancies and better work practices would be worth at least £650,000 a year. He said the decision had sent a strong signal to potential investors and put the company in a good position for the future.

The examiner, Mr Rory O'Ferrall, of Deloitte Touche, is expected to seek an extension of his term when the High Court reviews the situation on September 12th. A member of his team, Mr Aidan O'Carroll, said the vote was a vital part of the jigsaw to save the company.

It would now be possible to discuss detailed proposals with potential investors and it was hoped talks would be "very advanced" by the end of September. Although losses may reach £750,000 this year on a turnover of £8 million, Thermal Heat Exchangers is an asset-rich operation. At least one Irish and three other potential investors have shown interest in the plant.