New biomass briquette underpins the future of Derrinlough plant

Bord na Móna has confirmed it is planning to begin large-scale production of its new biomass briquette and will seek planning and other approvals in the coming months for production at its plant in Derrinlough.

Last week, the 61 employees at the Derrinlough plant located near Birr learned that the facility is to remain as the sole location for future peat briquette production and the new biomass briquette, while its second facility in Littleton in North Tipperary will cease production following the the coming season, ending in April 2018.

Bord na Móna is to begin an engagement process with Littleton employees following a review into peat operations, prompted by the very significant decline in sales over the past four years.

The company cited increased competition, consumer trends, low oil prices, Carbon Tax and other factors as the reason for the fall in sales over the past four years.

This fall prompted a review in briquetting operations that was mandated to identify a solution to the challenges that would sustain the business and jobs for the long term.

The review concluded that to sustain the business into the future, Derrinlough factory would be the optimum location for future investment to secure the future of the Fuels business.

The report also concluded that the company’s Littleton facility, where there are sixty-nine permanent employees at the facility, should permanently cease production in April 2018.

Bord na Móna went on to say that there will also be some impact on employment in peat harvesting at Littleton where 56 people are employed.
'While the company is formulating a long term resource plan for these employees that will be communicated in the near future, the company confirms that no redundancies in this area are being contemplated in the current year,' read a company statement.

'Having received the review conclusions, the company has now begun a process of engagement with the Group of Unions and employees.'

Employees of both briquette factories were briefed on the details of the review conclusions by head of Bord na Móna Fuels, Eddie Scaife.

Speaking after the briefing Eddie Scaife said it was a very difficult decision following a period of uncertainty for employees.

'We took a great deal of care with this review to ensure that a wide range of factors were taken into account. Briquette sales have declined significantly in the past few years as we have encountered unprecedented market, financial and regulatory challenges. Ultimately we had to make a decision that ensured we had a business that could survive these challenges and safeguard the biggest number of briquetting jobs.”