PET recycler Wellman International files for debt protection

Iranpolymer/Baspar Wellman International Limited has filed to place its operation in Mullagh, Ireland, into examinership.

Examinership is a legal process in countries like Ireland where a company experiencing financial difficulty can seek court protection to restructure its debt and avoid liquidation.

Wellman International is a subsidiary of Indorama Ventures. The Thailand-based petrochemical company acquired the Irish PET recycler in 2011. Wellman has been operating at Mullagh for over 50 years.

The business has seen losses in the double-digit millions across 2023 and 2024, resulting from increased energy prices following geopolitical conflicts and fierce competition from low-priced imports from China, Africa, and the Middle East, Indorama Ventures said in a statement.

Wellman is one of Europe’s leading producers of high-quality polyester fibre products from recycled post-consumer PET bottles. Its operations at Mullagh have capacity to recycle 2.2 billion post-consumer PET bottles into 100% recycled fibre a year. The company is one of the largest European PET recyclers, with two flake processing facilities in the Netherlands and France with a combined flake capacity of 70,000 tonnes. The facilities service fibre production in Ireland, with applications in the automotive, home, leisure, and hygiene sectors.

Despite suffering heavy losses in the past years, the company’s board believes operations at Mullagh ‘have a potential future’. An interim examiner has been appointed to investigate the company’s affairs and develop a plan to restructure its debt. Creditors and the High Court of Ireland must approve the plan.

“This decision is no reflection on the hard work and commitment of our employees in Mullagh,” said Anthony Troy, director at Wellman International. “We are aware of the uncertainty and concern this will cause for our people as we attempt to secure the survival of the company.”

Wellman employs 217 people at Mullagh. The company management acknowledged that jobs are likely to be cut as part of the examinership process.

“For more than two years, management has taken action to cope with the situation,” Troy continued. “Unfortunately, these measures have not proved sufficient to overcome the challenges we are facing. We want to do everything we can to enable the operation to continue in business and retain as much employment as possible. Examinership gives us the best prospect of doing that. It is important, however, that we acknowledge that there is the potential for a reduction in our headcount as part of this process.”

Last year, Indorama Ventures announced a significant review of its business strategy to adapt to ‘unprecedented industry conditions’.

The new strategy is designed to optimise its asset footprint, improve cashflow, and significantly reduce debt levels. Measures include a $2.5 billion reduction in net debt to around $4.3 billion in 2026, including generating $0.8 billion in cashflow from operational improvements and a further $1.7 billion from strategic corporate actions including divestments, asset actions, and select business listings.

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