Coillte believes a market for luxury modular timber frame homes still exists in Ireland despite its exit from a joint venture with Austrian company GriffnerHaus.

The state-owned Irish forestry company sold its stake in Griffner Coillte to its joint partner, which is to abandon manufacturing in Ireland.

A spokesman said 32 people would be made redundant and the site in Mullingar, which opened in 2003 with the promise of 250 jobs, was in line to be vacated. A handful of staff would remain in Ireland in sales and support roles, but all manufacturing would move to Austria.

Coillte owned 70% of the company and the sale now gives GriffnerHaus full ownership. No details of the financial deal were disclosed.

Coillte said the sale had been part of a review of operations that had already resulted in the sale of other businesses.

“This is a non-core activity and the volumes have not been there to justify that kind of commitment,” said a Coillte spokesperson. “We still feel there is a market for high quality, top spec timber frame homes, and they are selling, but the volumes are insufficient.”

GriffnerHaus spokesman Thomas Schmid said: “GriffnerHaus is committed to the Irish market and to serving current and new customers.”

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