Johnson & Johnson is to close its Cashel manufacturing plant with the loss of 133 jobs, it was confirmed this afternoon.
The decision comes as Cordis Corporation, a Johnson & Johnson company, said it would stop manufacturing its Cypher drug-coated heart stents by the end of the year and end development of a new model.
Staff were told of the plans at a meeting today.
“Today is a very difficult day for all of us. However, I want to stress that the intended closure of the Cordis business unit in Cashel is not a reflection on the dedication and hard work of everyone here at Cashel,” general manager David Kinahan said.
“There are strategic business reasons behind the cessation of the Nevo coronary stent programme, and the intended closure of the Cashel operations where the Nevo stent is manufactured, is a direct result of that decision.”
Bryan Mohally, a vice president in Johnson & Johnson, said the company remained committed to Ireland. “We will explore alternatives for the Cashel site,” Mr Mohally added, “and we will also make every effort to help those who may be affected by any job losses in terms of redeployment within the Johnson & Johnson family of companies where possible, and the provision of outplacement assistance and services,” he said.
The move is part of a restructuring that will cut as many as 1,000 jobs worldwide. A second factory, in San German, Puerto Rico, is also due to close.
Johnson & Johnson said the restructuring will result in charges of $500 million to $600 million in this year's second quarter.
The company has lost ground to Abbott Laboratories and Boston Scientific in the $4 billion-a-year global market for stents. The company's Cordis division sold $627 million in drug-coated stents last year, compared with $919 million in 2009 and $2.62 billion in 2006, according to data compiled by Bloomberg.
"Due to evolving market dynamics in the drug-eluting stent business, we see greater opportunities to benefit patients and grow our business in other areas of the cardiovascular device market" said Seth Fischer, Cordis' worldwide chairman, in the statement.
Cordis will remain in other markets and "we will continue to bring innovative cardiovascular solutions to patients in the future", he said.
Additional reporting: Bloomberg
