ECC Teo, one of the largest mills in Ireland and the UK, processes 450,000 cubic metres of logs annually. The company is Coillte’s largest customer for round logs, producing construction, fencing and pallet timber products for the domestic and UK markets.

ECC Teo supplied 30,000t of wood chip per annum to Aurivo to fuel its biomass facility at its milk processing plant in Ballaghadereen, Co Roscommon. It is understood that this arrangement will continue. The funds received from the sale will be invested in the co-op’s core business and new investment opportunities.

The Fahy family, who set up the plant with Aurivo (then Connacht Gold) in 1992, are buying out the 67% share.

ADVERTISEMENT

2015 accounts

Aurivo made no mention of the performance in its 2015 accounts. In its 2014 annual report, Aurvio said that ECC Teo “had a good year with export markets performing strongly”. It is understood that while volumes had increased in recent years, domestic demand remained subdued and, according to more recent annual reports, export demand was strong.

Log processing had been challenging in recent years as log prices had risen. Aurivo, in its 2013 annual report, said that because of this, prices were now unsustainable and that it highlighted the need for a review of prices in what it called “was effectively a monopoly supply situation”.

“ECC has always been a family-run company but now it is a family-owned company,” said PJ Fahy. “We enjoyed an excellent partnership with Aurivo since 1992 and now our family and team at ECC look forward to the next era,” he told the Irish Farmers Journal.

“We are lucky to have an excellent workforce based in such a supportive community,” said Daryl Fahy.

“ECC will continue its development as an innovative and successful company capable of increasing market share in Ireland and the UK, as well as providing much-needed employment in rural Ireland.”

Donal Magner also contributed to this story.