Wellman International purchased by UG Group

Global plastics producer and recycler Indorama Ventures has sold its Wellman International (Ireland) Ltd. business unit to the Universal Green (UG) Group, which is based in London.

Wellman is one of Europe’s leading producers of high-quality polyester fiber products made from recycled postconsumer polyethylene terephthalate (PET) bottles.

Indorama announced the sale in late September, saying it had been approved by The High Court in Ireland.

“Indorama Ventures has achieved its main goal to find a new owner for the Irish operations and preserve as much employment as possible,” the Thailand-based company says.

While Indorama says a necessary reduction of positions at its former business unit was achieved voluntarily, UG Group intends to focus on “green growth” following the acquisition. Indorama purchased the Wellman operations in Europe in 2011 from Germany-based Aurelius AG.

“Indorama Ventures is very grateful for everyone’s efforts in this examinership process, which has helped to manage a difficult situation successfully and achieve the best possible outcome for employees, customers, business partners and the local community,” the company says.

UG Group is a United Kingdom-based company involved with “revolutionizing the decarbonization sector with high-integrity, transparent and scalable carbon solutions that enhance the voluntary carbon market.” The company says it is working closely with Wellman’s employees, union representatives and key partners and suppliers to “create an exciting growth plan.”

According to UG Group, each year, hundreds of millions of postconsumer PET bottles are recycled by Wellman, adding that the firm also has the ability to convert other used PET feedstocks into 100 percent-recycled-content fiber.

“Sustainability is all about people, products and the planet,” UG Group founder and CEO Magnus Hammick says. “Supporting the net zero transition is the central purpose of the UG Group, and Wellman is a hugely important element to a thriving, sustainable circular economy. It ensures that waste plastics have a viable onward life.

“For Wellman, we bring much more than capital; we bring expertise and a large network in cleantech and waste management that will help us grow operations and revenues. Wellman can grow to become a European champion while making the world a cleaner place. This is our goal.”

Referring to the Wellman facility in Mullagh, Ireland, Hammick says his firm intends to secure its long-term future and help the business grow and achieve profitability.

“I would like to thank Minister Smyth and the Irish governmental organizations for their support during the acquisition process,” Hammick adds, referring to Niamh Smyth, Ireland’s Minister for Trade Promotion, Artificial Intelligence and Digital Transformation.

“I was delighted to visit Wellman International (Ireland) Ltd. in Mullagh [to] discuss the company’s plans for the future,” Smyth says. “For many decades, Wellman has played a vital role in the local economy, providing skilled employment and contributing significantly to the community here in East Cavan.

“Today’s visit was an opportunity to see the impressive work being done on site, meet the dedicated staff and hear about plans for the company’s future. It’s clear there is a strong commitment to maintaining operations in Mullagh, and I welcome the focus on innovation, sustainability and long-term growth.

In addition to its ownership of Wellman, UG Group describes itself as a pioneer in renewable energy and the operator of a carbon-related registry.