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News : EU Economy Last Updated: May 28, 2009 - 5:33:02 PM


Quinn Glass to appeal UK Council order to demolish Ellesmere Port factory following planning dispute with Irish-controlled Ardagh Glass
By Finfacts Team
May 28, 2009 - 1:52:23 PM

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Quinn Glass confirmed today, that it has lodged an appeal against the enforcement proceedings brought by Chester West and Cheshire Council to demolish its Ellesmere Port factory - - Europe's biggest integrated glass container manufacturing and filling facility -  - within 18 months from tomorrow. Production at the site was ordered to cease within nine months, further to planning dispute, which was initiated by Irish-controlled Ardagh Glass.

Quinn Glass competitor Ardagh Glass, is controlled by wealthy Dublin financier Paul Coulson via his Yeoman vehicle. In 2006, at the height of the Irish property bubble, the Coulson-controlled South Wharf, was part of a consortium, which sold the former Irish Glass Bottle 24-acre site site at Ringsend, Dublin, for €412m - - €17.2 million an acre.

Ardagh had paid amost £300m in 1999 to buy UK-based glass manufacturing company Rockware. In 2007, it paid a further €660m to buy the UK glass container manufacturing business of global packaging giant Rexam, giving it additional plants across Europe. One of Ardagh's plants is about a two-hour drive from Ellesmere Port.

Quinn Glass, which is owned by billionaire Sean Quinn,is estimated to have between a 25 to 30% share of the glass container market in Ireland and the UK, while Ardagh is understood to control about 18% of the total European market.

Quinn Glass invested £300m constructing its plant at Ellesmere Port and employs about 700 people there. Ardagh says Quinn Glass, which received £10m in grants for its Ellesmere plant, has failed to comply with  proper planning laws and procedures

Quinn Glass said today that in April this year, the Council was directed by the High Court to serve an enforcement notice in respect of Quinn Glass’ factory at Elton. Quinn Glass’ main ground of appeal is that the planning application, that has been with the Council since January 2008, should be allowed to be determined by the Local Authority (Cheshire West and Chester Council), which if successful would render the court’s involvement unnecessary.

Peter Fitzgerald, director from Quinn Glass said:“This is just the next step in our fight to win the long-term security of our site in Elton. Quinn Glass plays an important role both within the community and the region - we employ over 700 people from the area and boost the local economy with £4 million in taxes alone – so securing the future of the plant is our utmost priority.”

At present the Council is considering Quinn’s planning application and it is a hoped that the Council will determine the planning application within the next two months.
 
The enforcement notice was served by the Council as the Court was concerned that the Quinn Glass factory might acquire immunity under the four year rule and therefore the Local Authority would lose their regulatory powers, because the plant has been in operation for more than four years.

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