The Weyerhaeuser composite panel manufacturing plant in Clonmel, Co Tipperary is being put up for sale by its US owners.
Weyerhaeuser said yesterday it was exiting the composite business and putting its Irish plant on the market along with some larger US mills.
A spokesman for the company said it believed the 200-strong workforce at Weyerhaeuser Europe in Clonmel was a significant asset and would be retained by any buyer. The company has not put any timeframe on the deal, but the spokesman said: "We do not expect this to be a drawn-out process."
The company's preference is to sell it to one buyer, but a piecemeal disposal could not be ruled out, he said.
In a statement issued yesterday, Steven R Rogel, the chairman, president and chief executive of Washington-based Weyerhaeuser, said: "As part of our ongoing portfolio review, we have determined that the composite panels business is not a strategic fit for Weyerhaeuser. We believe that the skilled employees at these highly competitive and efficient mills will provide greater value for a new owner who is more focused on this line of business products."
Weyerhaeuser Europe made an operating profit of €3.45 million in 2004 on sales of €74 million, mostly in the UK market.
However, it made a provision of €50 million in respect of debts owed by a number of French subsidiaries that resulted in a loss for the year of €46.7 million.
According to the statement: "Weyerhaeuser will continue to operate the composite panels mills while it seeks new ownership. The North American mills have the capacity to produce a total of 1.1 billion sq ft, while the Clonmel mill has a capacity of 230 million sq ft. About 1,000 employees work in the mills."
