EFFORTS TO BUY S&S APPEAR SET TO FAIL

LACK OF PROGRESS MEANS RECEIVERS COULD BE FORCED TO SELL OFF THE PLANT PIECEMEAL November 1986

A year after the shock closure of S & S with the loss of 320 jobs, it looks as if efforts to find a buyer or consortium to take over the Dundalk business will fail.

Ivan O’Neill, of Craig Gardner & Co., the receivers called in by Foir Teo., lays it on the line that the time is rapidly approaching when they will have to make a decision on the plant.

He reveals that the holders of the patents have been back and forth to Ireland on a couple of occasions, been given ‘ the red carpet’ treatment by the State agencies, but ‘never seem to get there’ when it comes to making a decision on whether or not to take over the Dundalk operation.

Against this background, the receivers can’t continue to keep paying out on insurance, rates, security etc., as realistically the patent holders are the only ones who can take over the plant intact.

So, it seems the receivers will be forced into selling off the plant piecemeal.

However, former S & S Dundalk managing director, Marcus Park, still hasn’t entirely given up hope of getting together some package to re-open the plant, albeit on a much smaller scale.

Mr. O’Neill, of the receivers, adds his optimism has diminished after 12 months.

‘It’s still as it was the day the receiver went in. Nobody has come forward with a satisfactory offer to acquire the entire premises.

He says time is running out, and believes the receiver can’t afford to let it go through another winter because of the damage that might be caused to the machinery.

The nub of the problem is that the patents are in the hands of a consortium of four parties, who came together to buy them at auction last June.

They represent diverse interests and ‘ seem reluctant to enter into any agreement.’

‘I’m afraid all our expectations are beginning to wane,’ Mr. O’Neill reveals.

Meanwhile, IDA north-east region manager, Cathal MacArtain, admits there is ‘no long queue of people’ waiting to take over S & S.

While most enquiries about the plant will go to the receiver, rather than the IDA, he isn’t hopeful of a major industry being found to take it over, and soak up a skilled workforce that has been idle for almost 12 months.

Mr. MacArtain says the IDA has made it known through their overseas offices that the Dundalk facility is available, and has tried to generate interest in it, but nothing has come of it.

Against all this, Mr. Park hasn’t given up hope of getting the plant re-opened.

‘As far as I’m concerned, the project isn’t dead, and while the receiver and others don’t sound very optimistic, they haven’t my stamina, and I’m not prepared to let this project die,’ remarks the former managing director.

He accepts the major problem is the patents, and the fact they are held by a consortium of four in America who have rejected all offers to buy them.

Mr. Park says S & S doesn’t necessarily have to re-open for the production of the corrugated paper machines.

‘It is a good general purpose engineering works which could be put to numerous uses, if only the work can be found. But it is a large engineering works with big overheads.’

The Amalgamated Transport and General Workers Union represents about 100 of the S & S workforce, and Dundalk district secretary, Michael O’Reilly, points out S & S is worth backing as it was making money, turning out a good number of apprentices and was a good export earner.

He adds it is an ‘absolute and utter scandal’ that the State doesn’t do more to secure the patents, but he is satisfied there is still a possibility something could happen.

Mr. O’Reilly recognises the part the receiver has played in keeping alive the slim hopes of something emerging by opting to sell the plant as a unit, and not yet looking at the other option of breaking it up, which would be the death knell for their hopes.

He confirms that many of the workers who have been laid off are getting to the critical stage as the end of pay-related money looms ever closer, and there is no alternative work in sight.

Deputy Brendan McGahon hasn’t given up hope.

During the year, he did the arm-twisting to get Foir Teo. to pump £1 million into trying to save the plant.

They had been reluctant, having lost considerably before, and called in the receivers.

But with pressure from the Department of Industry, instigated by Mr. McGahon, the State rescue agency did agree to put up the money in loans, with a further £500,000 coming from America to re-start the plant, albeit on a small scale.

This specific bid failed, but the TD asserts he hasn’t given up hope, even if others have.

‘ There is life in the project yet, and I am determined that it shouldn’t be allowed die away.’

He praises the work of Mr. Park and company secretary, John Bastible, to try to re-open S & S.

‘ These two men have travelled the world in the last year trying to get this engineering works opened.

‘For their efforts alone, they deserve to succeed. They have put so much work into the project, to fail now would be a tragedy.’

Deputy McGahon says that he will continue to knock on doors in Dublin and elsewhere to back any attempts to rescue the plant ‘which is vital to the industrial and social fabric of Dundalk.’