POLYESTER FIBRE manufacturer Wellman International narrowed its losses to €2.4 million in 2009, as energy costs fell and margins improved.

Accounts just filed at the Companies’ Office show that the Meath-based manufacturer recorded a 1 per cent increase in turnover to €102.4 million last year.

Operating profit as a percentage of turnover improved slightly due to an increase in Wellman’s margins, lower energy costs and a freeze on labour costs.

Wellman International is the largest producer of high-quality polyester staple fibres in Europe, for which it makes use of recycled raw materials.

The directors noted that, while energy costs subsided in 2009, the increase in raw material prices and weak consumer spending caused by the recession would bring “a very challenging year in 2010”. They added they were “continually working to reduce these costs”. The company made an operating profit of €896,000 in 2009, compared to a €2.8 million operating loss the previous year.

Its pretax loss arrived at almost €2.2 million, compared to €5.1 million in 2008, while the €2.4 million loss retained for the year compares with a €4.4 million loss in the previous period.

The average number of people employed by Wellman at its plant at Mullagh, near Kells in Co Meath, was 379.

Most staff members are involved in production, with small numbers in sales and administration positions. Staff costs were €22.9 million last year.

The group, which has an exposure to sterling on a quarter of its revenues and up to 15 per cent of its input costs, is using new hedging tools to cope with currency volatility.

Wellman uses PET drinks bottles as part of its raw material supply at its Irish plant, which has the capacity to produce more than 80,000 tonnes of fibre each year.