The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, has appointed IBI Corporate Finance to advise and assist the State in relation to any sale of Irish Fertilizer Industries (IFI).
The two main shareholders in IFI, the State and ICI which owns a 49 per cent stake, have agreed to seek a joint sale of the fertilizer firm following preliminary discussions, Ms Harney said. Ms Harney met with the IFI groups of unions yesterday to reassure them about jobs at the company. IFI employs 630 people in Arklow, Cork and Belfast and some 80 per cent of its workers are represented by SIPTU, although MSF and the TEEU also have members in the firm.
Mr Noel Dowling, SIPTU national industrial secretary, said the process was still at a very early stage but the meeting had agreed to the establishment of a consultative committee made up of company, union and Government representatives and advisers who would monitor the whole process. A change in the ownership of the company became inevitable when it became clear that ICI, which has disposed of its fertilizer interests in Britain, wanted to sell its stake. The State, which owns the remaining 51 per cent of the company through NET, is not interested in buying ICI's share.
Flotation, seen by observers as a possible option at one stage, is not being pursued and a joint sale is now the preferred option, a spokeswoman for Ms Harney said.
The agri-business group IAWS, which owns the large fertilizer group Gouldings, has already expressed an interest in IFI while firms such as the big US group Terra which bought ICI's British interests last year may also take a look.
IFI, which holds a 40 per cent share of the Irish market and about 4.5 per cent of the European market, has been suffering of late because of weak market conditions. Pre-tax profits fell to £6.95 million in the year to last September from £18.66 million in 1996 as fertilizer prices dropped sharply.
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