Chemfab Corporation, which employs 100 people in the manufacture and sale of polymer-based products in Co Clare, is to locate its European centre of manufacturing in the county as part of a $3.75 million (€3.66 million) rationalisation programme.

The managing director of the Kilrush plant, Mr Larry Richard, said that between 10 and 15 more employees should be taken on as part of the move which involves the closure of a plant in Lancashire, England, but confirms the future viability of the west Clare operation.

The US-based company has a market capitalisation of $141 million but has launched an efficiency drive which will make Kilrush the centre for its single coating activities in Europe, involving the coating of fibreglass with Teflon, a technology similar to that used in non-stick cooking ware.

Chemfab has operated in Kilrush since 1981 and now employs about 80 people there. Mr Richard said new production equipment was installed at the plant last year. It also has a sales and management office in Ennis. He added that he expected the consolidation to be completed by October.

The company, which has its headquarters in New Hampshire, came to notice recently as one of the contractors for the building of the 487,000 sq ft Millennium Dome in Britain after the government gave in to Greenpeace, which had opposed using a PVC-coated polyester dome. Chemfab, in association with Birdair, provided the material for the $22 million roof from the US, using glass fibre coated with Teflon.

Chemfab expects its rationalisation plan to yield after-tax savings of $800,000 in the first full year and $1.4 million annually thereafter.