The plant was one of many small operations listed in this website that faded away in the early 1920s, most of them getting little attention. However, Drinagh, the only cement plant in the Irish Free State, continued to make headlines, even years after its demise, largely as a result of the constant lobbying by Richard Corish (1886-1945), who was from 1921 until his death Labour Dáil Member for Co. Wexford. He was also mayor of Wexford 1920-1945. The purchase of the plant (for £17,000) by APCM from local ownership obviously came at a bad time politically. Relations with the company got worse when, after participating in the immediate post-war boom, the cement market collapsed, and the plant began in 1922 a series of stoppages (with lay-offs) due to market conditions.
The narrative that began to be related by politicians from there on was that APCM had purchased the plant for the specific purpose of shutting it down. Certainly, APCM could and did implement such plans in many instances - indeed, "buy-up and shut-down" was a fundamental part of its modus operandi. However, it is unlikely that this happened at Drinagh. The plant was far too insignificant and remote to constitute a competitive threat to the Blue Circle organisation, and as with many other small independent plants existing at the time, could be relied upon to quietly go out of business when faced with competition from modern plants. Irish capital showed no interest (or capability) in uprating it. In fact, Blue Circle had the confidence to invest in new plant, the philosophy being that, by reducing costs, the plant could be made to operate profitably, provided that sufficient local market could be guaranteed to keep the plant running flat out.
A dry process rotary kiln was installed in 1920 - a serious gesture of commitment. However, with a drop in orders, the plant stopped in March 1922. At the time, the only substantial market for cement was in Dublin, and European cement, made cheap by post-war inflation, was being landed there at low prices. Blue Circle attempted to compete in this market with sea-borne English cement. A political call (originating in Wexford) now arose to boycott English cement until the Drinagh plant was re-started. Some went so far as to suggest that only German cement should be purchased. None of this was likely to improve relations with APCM. However, APCM attempted to get the government to give preference to the Drinagh product (without actually excluding foreign cement). The following year played out against the background of the Irish Civil War, during which the market was further disrupted and any assurances from the government were not dependable in the air of chaos that prevailed.
The plant finally re-started in September 1922, but the kiln ran intermittently because of unreliable or non-existent rail transport. By April 1923 the plant was again full up and kiln production was stopped again. Dublin Corporation was using exclusively French cement, but Corish persuaded them to undertake future projects with 50:50 French and Drinagh cement. This resulted in fact in no new orders, and in June 1923 APCM shut the plant "indefinitely". In July, Corish convened a meeting with the Government and APCM, and got them to specify Drinagh cement for Board of Works projects. APCM came away saying that this and similar assurances from Dublin Corporation would be sufficient to keep the works going at their full capacity. They continued to moan about rail rates.
The plant again re-started in August 1923, relying upon these assurances. By April 1924, the situation had deteriorated again. APCM contacted Corish directly, saying that the preferential treatment that they were getting - if any - was insufficient to exclude French cement, which was 20% cheaper. Corish contacted the government again and they assured a 15% price preference. On 20/5/1924, the Free State government suspended Dublin Corporation, and all supply agreements were terminated. The railway refused to negotiate on rates. At this point APCM obviously decided that the game was not worth the candle, and shut the plant down, this time with finality.
Corish continued to badger the government to get the plant re-opened, while simultaneously demanding a boycott of English cement, the latter being somewhat redundant since European cement continued to supply the market at prices lower than were economic for Blue Circle.
Amidst all the chauvinistic rhetoric about the plant, at no time was its viability questioned. Although there were good reserves of limestone of moderate quality, and a large modern exporting plant with its own wharf would have been very profitable, Drinagh was a truly terrible location for a small, inefficient plant, far from its main markets. The plant could have survived by operating flat out, but the Civil War and the post-war depreciation of foreign currencies conspired to ruin its market at the crucial time. Persistent political antagonism put the final nail in the coffin.
In August 1927, the plant was put up for sale. The sale notice is interesting.
To be sold by private treaty Drinagh Cement Works, situate near the Town of Wexford and comprising Freehold Cement Works and Quarry, Dwelling house, 8 Cottages and 77 statute acres of Land, with connection to the Great Southern Railway, all held free of rent for ever.
Capacity of Works, 150 tons per week.
The Plant comprises:
- 200 h.p. Compound Condensing Engine
- Lancashire boiler and economiser
- Non-condensing steam engine
- Jaw Crushers
- Millstones
- Steel Circulating Silos
- Vertical Continuous Lime Kilns
- Small Rotary Kiln 67 ft. x 5 ft., with Cooler, 30 ft. x 3 ft., and Coal Pulveriser
- No. 6 Krupp Ball Mill and 16 ft. x 4 ft. dia. Krupp Tube Mill
- Warehouse, capacity about 1,000 tons
- Usual Offices, Laboratory, Stores, Fitters' and Carpenters' Shops.
For further particulars and conditions of Sale, please apply to M. J. O'Connor and Co., Solicitors, Wexford.
Although the plant was clearly offered for sale as a viable concern, there were no takers.
A question remaining is whether it was justifiable to insist on Government-imposed protection measures to ensure the viability of indigenous production. A clue to the answer may be found in the foundation of the much larger and more efficient Drogheda and Limerick plants in the 1930s. At the official opening of the plants, the Danish chairman of the company, Niels Max Jensen (b 6/11/1894 Randers, d 19/3/1965: also chairman of Tunnel and FLS), explained that:
the reason Ireland had not built a cement works before that time was because no one was willing to run the risk of providing the necessary capital until the Government made up its mind to assist the industry by affording the necessary protection against unfair competition.
For "unfair competition" read "any competition". A high import tariff was imposed.