IDA to seek buyer for tyre plant

THE Industrial Development Authority has been instructed by the Minister for Enterprise and Employment to set about immediately finding potential purchasers for Semperit (Ireland) Ltd.

Mr Bruton was clearly accepting that the closure of the plant was inevitable following a 1 1/2 hour meeting with Dr von Grunberg, the executive chairman of Continental AG, Semperit's parent company, in Frankfurt yesterday. Mr Bruton had impressed on him at that meeting the importance of the Dublin plant to the Irish economy and specifically to Ballyfermot, an area of high unemployment.

"The Minister, in the most forceful manner, put forward the case for retaining production in Ireland with a view to maximising the number of jobs at the plant, prior to Continental making its final decision on the future of the Ballyfermot operation," according to a statement from his Department last night.

The indications from Dr von Grunberg were described as being "not promising", but he assured Mr Bruton that he would carefully reflect, with his board, on the case made to him.

In the event of the board's decision not being favourable, Mr Bruton sought, and wads given, assurances that there would be a phased wind down, discussions with staff representatives, and the company would co-operate with the IDA in its endeavours to secure a tyre manufacturer to purchase the `plant'.

Departmental sources confirmed last night that Mr Bruton had known for six or eight months that Semperit was in difficulty. The IDA had constant meetings with the company. The Minister had arranged to meet the chief executive of the parent company yesterday because he had received "indications in the last few days" that a decision about Semperit could be imminent.

Expressing his concern about developments, Mr Bruton said last night that everything possible that could be done was done. "I have taken a personal interest in this matter for many months and have met on a number of occasions with local management and trade unions. Together with the IDA, we have been pressing doggedly the case for the Dublin plant's retention," he said.

On his return to Dublin yesterday afternoon, Mr Bruton briefed senior SIPTU officials on the situation as he saw it.

The Fianna Fail leader Mr Ahern, described the announcement as a major blow to Ballyfermot and to Dublin. He immediately called on the Government to establish a task force for Ballyfermot.

Mr Bruton, he said, had to take some of the responsibility for the closure. There had been fears for Semperit since early this year. Fianna Fail had raised the Semperit situation with the Minister in the Dail as early as last May and, at that stage, he was taking a hands off approach.

"This is in contrast to the Austrian government which held a special cabinet meeting to explore ways of preventing closure of the Semperit plants in Austria," Mr Ahern stated.

The Progressive Democrats leader, Ms Mary Harney, said Semperit's closure would be a disaster for the region coming so soon after Packard's closure earlier this year.

She understood that Semperit's parent company, Continental, was seeking to transfer manufacturing activities to eastern Europe. "This highlights, once again, the need to reduce the of employing people in Ireland."

Expressing his shock about the closure, the Fine Gael TD for Ballyfermot, Mr Jim Mitchell, said that while last night's announcement seemed terminal as far as the Semperit parent company was concerned, every avenue of possibility should be explored immediately to see if a Joint company and Government effort could be mobilised, especially with a view to seeking out a possible alternative buyer.