Fears over future of Greencore plants
It is believed that a boardmeeting of Irish Sugar is being held today to discuss the fate of the plants.
According to Greencore's annual report for 2004, released yesterday morning, Irish Sugar faces another difficult year.
Reports at the weekend suggested Greencore would close its sugar site in Carlow and consolidate sugar production in Mallow. The Carlow and Mallow plants employ 450 workers directly and another 200 in the three-and-a-half month processing campaign.
A spokesperson for Irish Sugar would not comment yesterday on speculation on the future of the factories.
However, the firm said impending sugar regime reform poses major challenges for the Irish sugar industry as European sugar processors are facing increased levels of competition and impending regime reform.
The European Commission proposes a 37% beet price cut by 2007 and a quota reduction of 16% by 2008 a move that threatens the future of E140 million sugar industry.
Jim O'Regan, chairman of the IFA's sugar beet section, said any moves by the firm to reduce its workforce would be strongly resisted by beet growers and the community at large. He said up to 8,000 jobs depend directly and indirectly on sugar production in Ireland.
It also emerged from the annual report that chief executive of Greencore, David Dilger took a 10% pay cut last year. He saw his pay packet fall by E105,000 to E861,000 with his performance bonus cut in half.
Greencore reported pre-tax profits before exceptional items up 8% to E73m, but when these exceptional items are included profits actually fell.
Mr Dilger's basic salary rose from E504,000 to E570,000, but the bonus payment fell to E249,000. He also received E42,000 in other benefits.
The dividend payment to shareholders remained flat as the firm moved to pay down its debts. Chairman Ned Sullivan saw a huge rise in fees he receives for the part-time roll, netting an extra 49,000 to bring his pay to 160,000. The board was paid E2.98m last year, down from E3.09m the previous year.
