Qualceram shares up 9% on site move

Shares in Qualceram Shires jumped by more than 9 per cent yesterday as the company said it had agreed to acquire the freehold…

Shares in Qualceram Shires jumped by more than 9 per cent yesterday as the company said it had agreed to acquire the freehold interest to all of its Arklow property, paving the way for the sale and development of the site.

The bathroom manufacturer said it had reached agreement to buy the freehold interest relating to part of its facility at South Quay, Arklow, from the Arklow Harbour Commissioners.

Qualceram, which already owns the freehold interest in the remainder of the Arklow site, did not say how much the deal would cost. Shares in the company added 12 cent, or 9.4 per cent, to €1.40 as investors welcomed the prospect of developing the site.

Qualceram's existing 11-acre site in Arklow is zoned as a waterfront development zone. This provides for mixed use development such as hotel, recreation and residential.

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Qualceram said that for some time it had been investigating the commercial advantages of selling the existing site for development and relocating its entire business in Arklow to an alternative site in the locality.

Chief executive John O'Loughlin said the move would allow the group to develop a new and modern manufacturing and distribution centre near Arklow, to which it remains committed.

"Arklow remains the best location for Qualceram Shires to operate its business," he said. "It is strategically located on the main N11 route and is equidistant from Rosslare and Dublin ports."

Qualceram's core bathroom manufacturing business has been struggling of late as it faces intense competition, rising energy costs and subdued conditions in the UK.

The company plunged into the red last year after booking a charge for restructuring a British plant and suffering higher energy costs.