Up to 20 new jobs will be created in the former Norsk Hydro factory in north Mayo if plans by a Cork firm to buy the plant are successful.

The Oran Group, a project management company, is in discussions with the owner of the plant, Mr Gerard Clarke, to purchase the premises and its contents.

Norsk Hydro was set up to produce peat-based fuels. It closed in 1999 after an investment of almost £30 million. It never produced goods for sale and over 40 jobs were lost when it closed.

Some locals wanted Udaras na Gaeltachta to purchase the assets which were eventually bought by Mr Clarke.

The Oran Group is working on behalf of a new company which is still going through the legal requirements for registration. The names of its shareholders have not been released. Its representatives have had discussions with Mayo county council on the legal requirements of their proposal, which is to convert sludge from sewerage treatment plants to a soil conditioner on the site of the Norsk Hydro factory.

The plan is to export the produce to the Middle East. Local peat will be used in the process.

The company proposes to use sludge from treatment plants operated by councils in Connaught. Planning permission is not required for this work because there is no material change of use from the time Norsk Hydro was in production.