Using the government’s so-called golden share in Irish Sugar, the minister has told Greencore that the sale of any “significant” assets of Irish Sugar need her approval. Greencore recently announced the closure of the Carlow plant with the loss of more than 300 jobs. Processing will be centralised from next month at its plant in Mallow, Co Cork.
Coughlan is keen to secure an alternative industry for Carlow to replace the jobs being lost and has asked Micheal Martin, the enterprise, trade and employment minister, to help with this process. It is understood that the government might seek to have part of the Irish Sugar facility set aside for this purpose.
Greencore will incur an exceptional charge of €65m from the rationalisation of Irish Sugar. Industry analysts expect it to sell the plant along with a seven-acre head office site close to Carlow town to recoup some or all of the costs involved. The site is currently zoned for industrial and agricultural use and will need to be cleaned up when the factory closes.
Greencore declined to comment. But one former company executive questioned whether Coughlan could block the sale of the site.
According to the executive, it is accepted that Greencore cannot sell the company or its sugar quota, or 20% of its sugar-producing assets. Greencore could argue, he said, that the Carlow site is no longer a sugar producing asset after it is closed.