IDA Ireland representatives met senior Asahi management in Dublin yesterday to urge renewed talks over the future of the plant in Killala, Co Mayo, which employs 320 people, according to an IDA spokeswoman.
There is growing concern about the future of the plant following the rejection by workers of new terms and conditions as part of a proposed management buy-out. Senior management at Asahi had warned workers that the plant would close if the proposals were rejected.
The Tanaiste and Minister for Enterprise, Employment and Trade, Ms Harney, yesterday expressed "deep concern" for the future of Asahi. She called on all parties concerned to recognise the importance of Asahi to Killala and the surrounding area.
Significant support was on offer from the industrial development agencies to assist with the restructuring of the business, she said. However, she was fearful that the efforts to date would come to nothing.
The plant manufactures synthetic fibre and has been losing money for most of the past 20 years. The buy-out proposal included a commitment by Asahi to write off substantial debts, invest in the new Irish company and pay up to Pounds 2 million in redundancy payments.
The plan also involved up to 18 job losses, changes in work practices and significant wage cuts, amounting to several thousand pounds a year in some cases.
The secretary of SIPTU's Mayo branch, Mr Noel Kilfeather, said the workers rejected the proposals by a 55-45 per cent margin. The union had recommended approval.
He said Asahi had earlier indicated it intended to pull out of the Killala plant, but that it was anxious to assist a management buy-out and was prepared to make a substantial capital investment in a new arrangement.
The union had been informed that the investment would be withdrawn if the workers rejected the proposals, Mr Kilfeather said. If this happened, the management buy-out was likely to collapse leading to the closure of the plant.
He accused Asahi managements of trying to orchestrate" the terms and conditions of employees in the new company, even though it would not be directly involved in the new venture.
SIPTU had asked for a meeting with senior Asahi officials, including members of the parent company's board, who arrived in Ireland from Japan yesterday. He was "hopeful" of a response from the company later in the week, Mr Kilfeather added.
Asahi management was unavailable for comment at the Killala plant yesterday evening: A member of Killala Community Council, Mr Sean Hannick said closure would have a "disastrous" impact on north Mayo, as the plant was worth Pounds 8-Pounds 10 million to the local economy annually.
Community leaders and industrial promoters in north Mayo were also deeply concerned about the developments.
Ballina Chamber of Commerce president, Mr Oliver Rouse, said the closure of Asahi would be a devastating blow, particularly for workers with families, mortgages and car loans. He said it would have a major knock-on effect for hauliers and suppliers, and for Ballina railway station through which the raw material, Acrylonitrile, was imported.
"The chamber is urging all agencies to come together to see what can be done," said Mr Rouse.
Meanwhile, Mayo County Councillor, Mr Brian Golden, said the workers were being "very poorly" treated.
