Cheap and below-cost imports from eastern Europe are posing a threat to the Irish Ropes twine production operation in Newbridge, Co Kildare, the company's managing director, Mr Christy Howard, has said.
The company, which employs 75 people and is part of the Barlo Group, is hoping a decision to introduce controls on eastern European imports will be announced by the European Commission later this week. An anti-dumping duty imposed in June on synthetic rope imports from India withdrew a threat to the company's rope production operation.
Mr Howard said cheap imports from Poland, Hungary and the Czech Republic were taking market share from Irish Ropes in the domestic and UK markets, and were also causing a squeeze on margins.
"This is not a panic thing and it is not just affecting Irish Ropes. The bailer twine industry across the European Union is under pressure."
He said a lot of eastern European manufacturers have state-of-the-art plant which was handed over without charge after the collapse of the former communist regimes. The companies therefore pay no depreciation charges.
The companies have labour costs as low as 20 per cent of those being paid by Irish Ropes. Eurocord, an organisation representing rope and twine manufacturers of which Irish Ropes is a member, has made a case to the European Commission alleging that the eastern European manufacturers are "dumping" product in the EU at below the cost of production.
Prior to October 1997, twine importation from eastern Europe was licensed and the amount allowed into the EU was controlled. Mr Howard said he was optimistic that such a measure may now be reintroduced.
More than 60 per cent of Irish Ropes' business is from twine production though the company has been investing in diversification and new products. Sealcon, a sister company, is making boxes for butter spreads.
