One of the joint owners of Atlantic Mills, a Co Longford denim-manufacturing company, will look for a strategic partner, after purchasing the remaining 50 per cent share of the plant. A spokesman for Ten Cate NV, the Dutch company which has owned half of Atlantic Mills since the late 1980s, said there was an agreement in principle to buy out the company's other owner, DMC, a French textile group. Mr Peter Rietman, investor relations manager of Ten Cate NV, said the plant at Clondra, Co Longford, which employs 260 people, could grow if there was an alliance with another partner.

"It could be with another European manufacturer, it could be an Asian cotton supplier, or it could be a US company looking for a foothold in Europe.

"Being sole owner of the company, we can enter into alliances much easier and quicker than with two partners on the same side of the table," he said. The company announced yesterday that its denim activities, which also include a plant, Hellenic Fabrics, in Greece, were no longer seen as a core activity and that there was a 40 million guilder (£13 million) provision taken in the first half of 1997, to realise "structural solutions" for the sector.

Mr Rietman said he was not willing to give an indication of how much the buyout would cost but it is likely to be worth about £7 million, based on the original acquisition price being worth up to £15 million. He said his company specialised in industrial fabrics and high grade textiles which were "totally different from the denim activity". But with a strategic partner and a client base, there were good long-term prospects.

"With our textile knowledge we can contribute to the production process in Ireland," he said.

Last year, Ten Cate was considering selling its share of the loss-making operation to DMC. But the Ten Cate chief executive said at the time that losses had not been as bad as in 1995, and manufacturing results were improving. However, last month the Atlantic Mills plant at Tullamore, Co Offaly, was closed with the loss of 100 jobs. Clients include the jeans manufacturer, Levi.

An IDA spokesman said the partnership between Ten Cate and DMC originally came about because neither company was seeking facilities as big as were on the market at the time.

But the partnership had not worked out because they were supplying different markets. He said the authority welcomed the development which would give "clear ownership" and allow for a business plan to be worked out. "The prospect for the future, even with new investment, would be extremely difficult and there is a need for competitive restructuring," he said.

Ten Cate NV also announced yesterday that it was selling part of its plastics operations to Wavin, also a Holland-based company, which has an operation in Balbriggan, Dublin, employing 120 people in the manufacture of pipes and fittings.

According to Ten Cate, it expects gains in its second-half results for this year because of the sale. Profits in its first-half results were lost because of the once-off 40 million guilders provision. Losses amounted to 21 million guilders.