Dubarry exports up £0.5m after restructuring

A FOUR YEAR competitiveness agreement with its workforce has resulted in new export orders worth over £0.5 million for Dubarry Shoes.

The Ballinasloe, County Galway based company has won the new orders for its marine footwear from Scandinavian countries.

The firm is confident of growth in turnover and profits this year after a difficult year in 1995. Orders are 25 per cent ahead of last year's levels, according to the company.

In 1995, Dubarry recorded turnover of £8.5 million, down from £8.8 million in 1994, due to some fall off in production during the four months of restructuring negotiations, the company said.

Dubarry's profits before tax fell from £0.31 million in 1994 to break even in 1995.

About 30 per cent of Dubarry's output is exported. The firm is now investing £0.5 million in marketing its shoes in Ireland and abroad, a rise of 15 per cent. This will be spent on research and development, promoting the brand and on improving distribution.

Negotiations on the competitiveness agreement with the unions were difficult and the talks took four months.

Dubarry says the deal gave it a short term boost, allowing it to compete, with strong shoe making countries such as Portugal.

A 12 month pay pause will run until December 1st, 1996. This has relieved the strain on production costs, said marketing manager, Mr Michael Walsh.

"We are in line with England on price and closing the gap with Portugal," he said.

From next December the Programme for Competitiveness and Work will be implemented at the Ballinasloe plant.

"I believe the workforce has done its bit to secure the future of the industry. Now it's up to the company to play its part by providing the investment and training which were promised in the deal" says Mr Michael Kilcoyne, industrial official with SIPTU.

"I hope that when conditions improve, it will be possible for the workers to get back what they have sacrificed."

The deal with the unions allows for a lower pay structure for new entrants at Dubarry. There is a permanent workforce at the company of 210.

The firm has taken on eight new workers recently and a further 12 will be employed in the next six to eight months.

Dubarry manufactures 65 per cent of its output in Ireland. The rest is sourced overseas.

After the workforce had twice rejected the competitiveness deal, managing director Mr Eamonn Fagan issued a statement that Dubarry had "selected alternative production sources to enable all products made at Ballinasloe to be phased out in the medium term. We will not be responsible for the closure of this factory. That is your decision."

After twice rejecting the deal, a number of clarifications were sought and the staff finally agreed in July.

Where Dubarry has faced capacity problems in the past, the new agreement will allow it to respond to peaks in demand, Mr Walsh said.

The company has been able to seek new export markets. It has developed a strong niche market for its boating shoes in Holland, Germany and France.

Per capita boat ownership is higher in Sweden, than anywhere else in the world. The Ballinasloe firm has undertaken an extensive marketing campaign in Sweden and is also pursuing major orders in the United States in 1996.

The emphasis, however, will continue to be on growth in continental Europe where Dubarry is a market leader in marine footwear.

The firm will develop into new product sectors and extend into the southern Mediterranean countries, says Mr Walsh.

A new range of boating boots will be introduced this year. A line of "functional and stylish" ladies boating shoes and boots is also planned.

Dubarry has used the platform of the marine sector to build brand awareness in Europe. The general footwear market also offers niche opportunities and "countrywear" is next, says Mr Walsh.

As with marine footwear, strong walking shoes represent solid, steady business, not susceptible to constant fashion changes.

Improvements in the company's distribution are planned. A new office and a showrooms aimed at the trade, will open at Temple Bar in Dublin in January.

Dubarry will continue to use its infrastructure and contacts with retailers to sell other brands and lines. It is the sole agent for Pony sneakers, Tottenham Hotspur shirts and other sportswear, for instance.

Dubarry is the number one shoe firm in the country. It makes a full range of footwear, including children's shoes, youth fashion shoes and men's executive shoes for the Irish market.

Mr Eamonn Fagan is the managing director and majority shareholder at Dubarry. The financial director, Mr Michael Larkin, is also on the board. Forbairt, which has a 40 per cent investment, is represented by Professor Jim Ward of UCG.