Ardagh plc plans return to Irish market

ARDAGH plc is planning to return to the Irish glass market by distributing glass container products made at its Germany factory.

The firm, which closed the Irish Glass Bottle plant at Ringsend, Dublin, a year ago, will import glass from Ardagh Glass Ltd and distribute to Irish customers.

Sources said the 30% rise in the price of glass in Ireland this year has tempted Ardagh plc, which is little more than a shell since the demerger of its main business last year to a Jersey- based private company, has tempted Ardagh Glass Limited back to Ireland.

The Irish glass container market is worth around €50 million a year and Ardagh believes it can win 30% of the market in a short period. This should allow it to return to profits and pay shareholders a dividend.

Yesterday, Ardagh said turnover for the first half of the year was just €1.8m, compared with €20m a year earlier.

Operating losses for the continuing operations were €0.96m that would be wiped out if re-entry proceeded. “We are in discussions with Ardagh Glass for a large volume of glass containers to attract business from many of our former Irish customers,” chairman Paul Coulson said.

Ardagh’s main asset is the IGB site in Ringsend, which it wants to turn into warehousing activities. A High Court hearing will decide this in December.

There had been speculation this site would be ideal for the location for the national sports stadium, but the cost of redevelopment is believed to be too high a price for the Government.