UK Plastic Recycling Crisis Continues: Wellman International Enters Examinership Amid Ongoing Financial Losses

On Monday 3 June, Wellman International confirmed it had entered examinership following a period of sustained losses driven by rising operational costs and intense global price competition.

The company, based in Mullagh, Co. Cavan, currently employs 217 people and is one of Europe’s leading producers of recycled polyester fibre. The decision to seek court protection reflects ongoing financial pressures which resulted in significant losses across 2023 and 2024.

Key developments:

• Interim examiner Kieran Wallace of Interpath Advisory was appointed by the High Court, granting the company 100 days to restructure and explore options for survival.
•  Losses have been attributed to rising energy costs, import competition, and challenging trading conditions, with significant pressure on margins.
• As part of the examinership process, the company is seeking fresh investment and is not ruling out a potential sale.
• The possibility of redundancies has been raised, with discussions expected to take place between management and employee representatives.

Unions have called for urgent engagement with Government and potential investors to ensure continued operations at the site and secure as many jobs as possible. Political representatives in the region have echoed these concerns, citing the plant’s importance to the local economy.

Wellman International is part of the Indorama Ventures Group and has operated at the Mullagh site since 1973. It remains one of the largest recyclers of PET materials in Europe, converting used plastic bottles into fibres for use in automotive, filtration, hygiene and home furnishing applications.

More detail is expected in the coming weeks as the examiner engages with stakeholders.

You can read RTÉ’s coverage here.

This comes as export competition is affecting the UK and other countries in the EU, and globally. RECOUP has raised concerns regarding plastic imports and their negative impact on UK recyclers and infrastructure. We are active in a number of areas, including providing clarity and evidence of inaccurate and fraudulent claims of recycled content; PRN reform; and exploring interventions that can change the current situation.