Dundalk-based Cellulac buy UK rival for €1m

Cellulac will be based at the former Harp Lager brewery, now the Great Northern Distillery

Dundalk-based biochemical company Cellulac has bought a UK rival in a deal believed to be worth about €1m.

The company, Aer Sustainable Energy, specialises in manufacturing bio-based oils, proteins and other valuable products from algae biomass.

Celluac, which is headed up by Gerry Brandon, said in a statement that the purchase would add to the company’s production capabilities in the bioplastic ingredients and biochemical sectors by adding “cosmetics and aviation biofuel to the core institutional knowledge of the Cellulac technology platform”.

Cellulac recently announced it is to invest €25m to redevelop its plant in Dundalk in the second phase of a multi-year upgrade.

The company is leasing a 6.8-acre site from John Teeling’s Irish Whiskey Company at what is now the Great Northern Distillery. Cellulac is to retrofit the facility for the production of barrel plastics.

Cellulac to invest €25m in Dundalk facility

Cellulac will be based at the former Harp Lager brewery, now the Great Northern Distillery

Irish biotechnology firm Cellulac is to invest €27m into redeveloping its plant in Dundalk over the course of the next three years.

The company is leasing a 6.8-acre site from John Teeling’s Irish Whiskey Company at what is now the Great Northern Distillery. Cellulac is to retrofit the facility for the production of barrel plastics.

Speaking to the Irish Independent, Cellulac chief executive Gerry Brandon said that the company was set to begin phase one of the revamp in the first quarter of 2016, which he estimates will cost roughly €2m.

The second phase, set to commence in 2017, is estimated to cost €25m.

Mr Brandon said that the first phase will allow the firm to ramp up production at the facility initially to 20,000 tonnes a year of an acid used to produce biodegradable plastics for export.

He said that construction of the second phase was set to begin at the end of 2017 and run into 2018, and said that by the time it was completed the plant will be producing approximately 100,000 tonnes a year.

He added that the retrofit would add about 30 jobs to the firm, which employs 19 people.

He said: “Most jobs will be created in phase one, where there will be about 36 new jobs. During phase two there will probably be work for another 50 people in construction and then production in the plant will become automated, we will have just under 50 people working full-time.”

He said that in total in equity and grants the firm has received roughly €16m so far.

He added that the company would look at its funding options within the next 12 months.

Cellulac recently signed a signed a five-year partnership deal with Dutch waste manager Pharmafilter worth €35m.

Source: Irish Independent

Great Northern Distillery to open in January

The Great Northern Brewery, which is set to become the Great Northern Distillery

The Great Northern Distillery will be up and running by January.

That’s according to new owner John Teeling, who bought the former Great Northern Brewery site from Diageo last year.

The former Cooley Distillery boss plans to spend €35m over four years to transform the former Harp Lager brewery into one of the biggest in the country.

Speaking to The Dundalk Leader this week, Teeling said he hoped to have construction completed at the site by December, with the hope of being operational early in the New Year.

He revealed that three copper kettles will be adapted into pot stills, which will allow the company to build a grain and pot still distillery in the same still room.

The full capacity of the distillery will be three million cases.

The distillery will be operational 24 hours a day from Monday to Friday and is expected to employ between 25-30 people.

Its produce will mainly be sold to third parties, with the plan being to distill grain whiskeys, pot still whiskeys and single malts for both the national and international markets.

He also hinted that he may look at building a visitor centre at the existing Carrick Road entrance.

Teeling’s Irish Whiskey Company will only be using half of the 13 acre site with 6.8 acres of it already leased to Cellulac, who will create 30 new jobs in Dundalk for the sustainable production of lactic acid from second generation (2G) feedstocks.

This week’s Dundalk Leader

In this week’s Dundalk Leader the newspaper looks ahead to tonight’s Dundalk Santa Run. There’s also news of Cellulac plc bringing 30 new jobs to the town while there’s a look ahead to the ongoing preparations for next year’s Local Elections.

All that and more in this week’s Dundalk Leader, which can be read online for free here.

Economic Forum welcomes Dundalk jobs announcement

Padraic White

Louth Economic Forum chairperson Padraic White has welcomed the announcement that Cellulac plc is to provide 30 jobs at a retrofitted facility at the former Harp Lager Brewery site.

The new jobs were announced earlier today and were described as “fantastic news” by Mr White.

“This is fantastic news, as it shows further commitment to the former brewery site which along with the Irish Whiskey Company now makes it home to two major facilities.

“The indirect benefits via support for agricultural jobs and local taxes as noted by Cellulac plc makes the news for Dundalk and the town’s rural hinterland even sweeter.”

Related articles

• Cellulac to create 30 new jobs in Dundalk at former brewery site (talkofthetown.ie)

Cellulac to create 30 new jobs in Dundalk at former brewery site

Cellulac plc is to create 30 new jobs in Dundalk for the sustainable production of lactic acid from second generation (2G) feedstocks. It is the first company to convert brewery facilities for this purpose.

Cellulac is leasing a 6.8 acre site from John Teeling’s Irish Whiskey Company, which is developing a distillery on the balance of the 13 acre site which was until recently the home of Harp Lager and the second largest brewery in Ireland.

Cellulac intends to retrofit the facility and incorporate its end-to-end chemical and process engineering platform to produce Lactic Acid and Polylactic Acid for biodegradable plastics, Ethyl Lactate, a green solvent, and Sodium Lactate.

The company has produced lactic acid at a pilot plant in Potsdam, Germany. It expects to ramp up production at the facility initially to 20,000 tonnes per annum, which will have a revenue value in excess of €40 million, for export by the end of 2015. Operations are expected to commence by June 2014.

The company is targeting a US$1.6bn market for lactic acid based biochemical.

“Ireland has a world-wide reputation for quality food ingredients derived from the agricultural sector. It is fitting, therefore, that we are at the forefront of the new bio-economy sector,” Cellulac CEO Gerard Brandon said.

“With the support of the European Union we will convert, part of what was until recently, the 2nd largest brewery in Ireland into what will be the largest producer of lactic acid from agricultural waste and dairy by-products.

“This will not only directly breath new opportunity into Dundalk by creating 30 jobs, but it will also indirectly support agricultural jobs in the rural community and generate local taxes that will benefit the area,” Brandon added.

Minister for Science and Innovation, Sean Sherlock TD, welcomed the jobs announcement.

He said: “I am delighted at this announcement by the company of its plans to create 30 new jobs for Dundalk. This is a shining example of EU and Government supporting science and innovation to cross-over to industry. We are delighted to be involved in this environmentally friendly project that not only creates new jobs, increases GDP and exports but contributes to the reduction of our country’s lower carbon emission targets to benefit the community as a whole.”

This week’s Dundalk Leader

 

In this week’s Dundalk Leader, there’s the story of Louth Village teenager Brendan Lawlor’s All-Ireland pitch and putt success in Cork, news of a potential €50m investment in the town by Cellulac and an update on four St Vincent’s students who are going to Romania to work with underprivileged children.

All that and more in this week’s Dundalk Leader, which can be read online here.

This week’s Argus

The front page of this week’s Argus

In this week’s Argus, a warning has been issued after a number of young calves were stolen in the area, there’s a report on a possible 60 new jobs for the area if Cellulac invest €50m in Dundalk while local musical couple Zoe Conway and John McIntyre reflect on performing for President Michael D Higgins.

All that and more in this week’s Argus… on sale now.

Previously: Cellulac planning €50m investment in Dundalk

Cellulac planning €50m investment in Dundalk

Cellulac, an innovative Irish company chaired by serial entrepreneur Gerry Brandon, is working on plans to invest €50m in an industrial biochemical plant near Dundalk, according to a report in yesterday’s Sunday Independent.

The company is understood to be in talks with Enterprise Ireland about creating 60 new direct jobs in the region.

Earlier this month, Cellulac agreed terms with Pursuit Dynamics (PDX), a Cambridge technology business, to buy its marine drive subsidiary for £1m (€1.15m) as part of its expansion plans.

In May, Cellulac signed a €3m joint-venture agreement with two partners to develop biodegradable human implants and bring them to market.

It intends for its proposed new business in Dundalk, however, to be making lactic acid, which is used in everything from preserving food to making plastic bags. The market for the chemical is valued at €1bn worldwide and growing.

When contacted by the Sunday Independent, Mr Brandon said: “We’re not in a position to comment yet, but we are certainly looking at a number of operations, one of which is in Ireland, but we cannot confirm anything at this point.”

Mr Brandon previously founded Alltracel, a wound-care company that he listed on London’s AIM before the business was sold for €32m in 2008. Cellulac is understood to be looking to raise funds to invest in its Dundalk plant from the London stock markets.

Source: Cellulac plans €50m biochemcial plant in northeast (Sunday Independent)