Blow for Kilconnell Arrabawn plant
Arrabawn's milk plant in Kilconnell, just a few miles from Ballinasloe, is not included in a sale by the co-op to Aurivo.
The news emerged overnight after the Board of Arrabawn Co-Op in Nenagh decided to accept an offer from Aurivo to purchase Arrabawn’s liquid milk sales book.
However, the Kilconnell site is not including in the sale, the co-op said and it is now "looking at options for alternative use".
An Arrabawn statement said processing at the plant would continue until the summer of 2023.
"The co-op employs 110 people in this area of its business. Approximately half of these, mostly sales employees, will transfer with the business, with redeployment opportunities also being made available to others across the wider business.," Arrabawn said on Friday.
"Subject to the sale going ahead, it is anticipated that processing at the plant will continue until summer 2023.
"The deal is subject to due diligence and approval from the Competition Authority.
"Milk supply and upcoming liquid milk contracts will not be impacted by this decision.
"Arrabawn’s priority is to support all employees and suppliers during the transition," the statement added.
A consultation process is underway with staff to ensure all necessary supports are being provided during the transition, it said.
Local TD Denis Naughten said: “Over recent years there has been significant investment in the plant which handles the liquid milk operations for Arrabawn Dairies who supply own brand milk to many retailers throughout the country and the loss of this competitor will also have a longer-term impact on consumer milk prices.”
“Following a meeting with local Councillors Tim Broderick and Evelyn Parsons yesterday on the threat to the Kilconnell plant, I have sought a meeting with Minister Charlie McConalogue and we now hope to explore all possible options to retain processing capacity and employment in the village of Kilconnell.
The local TD also wants to see the Tánaiste and IDA bring new investment to what he described as an "underdeveloped IDA park at Creagh".
“It is imperative not only that all possible steps are taken to bring replacement jobs to Kilconnell, but we also need to see the Tánaiste and IDA bring new investment to the underdeveloped IDA park at Creagh in Ballinasloe.”
“There is something fundamentally wrong when we have companies in Athlone and Galway talking of the need for additional capacity while we have over 50 acres of State land lying idle just a short journey over the road in Ballinasloe,” said Denis Naughton.