The French food multinational Danone has confirmed it is in advanced talks to sell its Irish Biscuits business in Tallaght, which employs more than 400 people.
Danone yesterday said it planned to sell the Irish business and similar operations in Britain.
"These discussions may or may not lead to an agreement but are advanced enough for the group to adjust the value of its assets in its accounts by €100 million," the company said. "A further announcement will be made when these discussions reach a conclusion."
Danone declined to comment on what implications this might have for jobs at the Tallaght plant.
Workers in the plant were in shock yesterday at the news. Mr Brendan Carr, SIPTU's food branch official, said that, while rumours had been circulating of a sale since Saturday, workers were only informed this morning of the sale. "They said that the discussions are at an advanced stage and they told us this morning that they are selling it," he said.
British media reports have suggested Danone is in talks with United Biscuits and private equity firm Hicks, Muse, Tate & Furst over a potential sale. The company has refused to comment.
The two unions at the factory, known locally as Jacobs, are anxious to meet with the company to clarify the position of staff in the sales process. The unions involved are the Amalgamated Transport Union and SIPTU.
Mr John Bolger, Irish secretary of the Amalgamated Transport Union, said he was optimistic that the plant would continue in its present incarnation. But he said workers had concerns about some of the companies mentioned as future owners.
Mr Carr said the prospect of Irish Biscuits being sold would have devastating consequences for the workers and their families if it meant a closure of the plant.
"The community in Tallaght has not yet recovered from the loss of 800 jobs following the closure of the Packard Electric plant and the loss of another 400 jobs does not bear thinking about."
Local Fianna Fáil TD Mr Charlie O'Connor said he was concerned by the news and he said it was not right that workers did not know their fate.
Analysts said that Danone had simply failed to establish critical mass in the British and Irish biscuit markets.
Mr Julian Hardwick, of ABN Amro in London, said the biscuit market was very competitive and, while Danone was number one in other markets, it had found it difficult to take the lead position in Britain and Ireland. He said he expected interest in the Irish and British operations to be reasonably healthy.
The confirmation of the sales plan was included in Danone's first-half results for 2004. The results showed net profits rising by 8.2 per cent but earnings were below consensus forecasts.
