A management buy-out worth £3.2 million has taken place at Portlaoise-based rubber parts manufacturer ENBI Ireland, a subsidiary of the Dutch company, Royal Ten Cate Group. A group of Dutch investors is behind the buy-out. The majority of the finance involved comes from the managing director of ENBI Ireland, Mr Arthur Hendrickx. The company will now trade under the name DIS ENBI Seals Ireland.

Royal Ten Cate Group decided to sell the company, which employs 130 people, because it wants to "refocus" itself on the textiles industry and other areas.

The company makes technical rubber parts, specialising in the design and manufacture of seals for pipe systems. It holds various patents and has developed more than 400 products in the last few years.

The company has an annual turnover of £6 million and exports 98 per cent of its products to western Europe.

Mr Hendrickx said yesterday that, as a result of the buy-out, he expected the company to grow by at least 10 per cent a year. He said this would mean extra employment.

In recent months, there has been active interest from the Middle East in the company's products and Mr Hendrickx said this may help to fuel much of the future growth.

The company is one of the biggest employers in the town and is said to have been moderately profitable over the last few years.

Mr Hendrickx said one of the biggest problems in recent years for the company has been in recruiting qualified engineers. "The skill shortages in this area can make things difficult at times."