Business shock: top firm plans to pull out

Business shock: top firm plans to pull out

14 September 2016

ONE of the area’s most successful businesses is leaving the district.

Alternative Heat — which employs 110 staff and specialises in renewable energy systems — has confirmed it plans to move from its current base in Castlewellan to Banbridge to allow its continued expansion.

The firm said the decision to move out of a town which has been its base since 2003 was a “difficult one” and that staff have been informed about the relocation.

News of the award-winning firm’s plan to move to Banbridge comes almost a year after local politicians overturned a recommendation by planners to refuse Alternative Heat permission to expand its operation at its Burrenreagh Road base. In November last year, the firm received £85,000 from Invest NI to support the development of its premises which created 23 new jobs.

Alternative Heat managing director, Connel McMullan, revealed on Monday afternoon that the firm is moving out of the district and that new premises have been purchased.

He also confirmed the Castlewellan firm considered moving to the Down Business Park outside Downpatrick but the location was not a suitable option.

“This site was too far out of the road and would have involved too much travel for our staff. While we did consider the business park it was not an option. It was prohibitive because of the travel involved for our existing staff,” explained Mr McMullan.

The businessman said Alternative Heat requires bigger premises and more space and that it would have been unable to provide this at its current base. He confirmed the entire Castlewellan operation will leave the district next year and admitted it was a “difficult decision” to leave a town which has been its home for 13 years.

“It was a difficult decision to leave, with circumstances dictating the need to relocate to allow our growth. All of our staff have been told about the relocation plan. Job security is a very important thing for them,” continued Mr McMullan.

“It was a hard decision to leave, but there are limited options in this area for industrial premises; we have no choice. In an ideal world, we would have stayed in Castlewellan, but this is just not possible.”

Confirming new premises in Banbridge have been purchased, Mr McMullan said the renewable energy firm has to keep moving “to allow our recent expansion to continue.”

South Down MP Margaret Ritchie said she “deeply regrets” the decision by Alternative Heat to leave the district for a new base in Banbridge.

“As a local company, Alternative Heat provided much employment in the Castlewellan area and has a UK base in Scotland. It also had plans to expand the business. The firm provides alternative heating products in a challenging financial environment, particularly at a time when the government has changed its policy in terms of renewables,” she continued.

Miss Ritchie said she believes there is available industrial space in Castlewellan and would have thought Invest NI would have been able to help the local firm secure alternative premises in the area.

The MP added: “If Invest NI had been approached I would have hoped it would have been able to help this firm. Even at this late hour, I hope it may still be possible to do so.” 

A spokesperson for Invest NI said the organisation has not offered the Castlewellan firm any money to relocate to Banbridge. She confirmed an offer of £85,000 made to Alternative Heat last year was for the development of its premises along with the creation of additional jobs.

“The company has delivered this investment and created an additional 23 jobs as a result,” the spokeswoman added.