A TOTAL of 133 people will lose their jobs because of the closure of a medical device factory in Co Tipperary, a decision owners Johnson & Johnson blamed on “evolving market dynamics”.
The news was delivered to staff in the Cashel manufacturing base at a lunchtime meeting yesterday and comes less than five years after plans for the plant were announced by then minister for enterprise Micheál Martin. IDA Ireland, which grant-aided the plant when it was being established in 2006, has described the closure as “regrettable” and said the performance and productivity of the staff was considered “exemplary” during the operation’s short history.
The IDA would not confirm how much it invested in the Cordis plant. “Any matters regarding grant-aid and liability would be matters between IDA and Johnson & Johnson,” spokesman Thomas McEvoy said.
The total cost of the 180,000sq ft plant was reported at €100 million when plans were announced in 2006 and it was initially envisaged that 450 people would eventually be employed there, but that ambition never came to fruition.
Asked if the multinational will have to repay some of that grant-aid, Mr McEvoy said: “That’s a matter which both parties would be aware of and in discussions on.” Efforts will be made to have some of the staff relocated to other Johnson & Johnson sites in the country, he said.
Johnson & Johnson said it is no longer developing its “Nevo Sirolimus-Eluting” coronary stent “as a result of “evolving market dynamics and product portfolio decisions,” and will stop the manufacture of this stent here by the end of this year.
“As a consequence of this decision the company intends to close the Cashel manufacturing site, which may result in the regrettable loss of 133 permanent positions,” Johnson & Johnson said.
Consultations regarding the job losses will begin with the employees “immediately”, the company said, with general manager David Kinahan describing yesterday as “a very difficult day” for all involved.
“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,” he said.
Local Independent councillor Tom Wood said it was a major blow for Cashel.
President of the Cashel Chamber of Commerce Mike Ryan said the news underlined the country’s reliance on foreign direct investment.
Johnson Johnson still has 10 business units, including four large manufacturing sites in Cork and Limerick, in the country and vice-president of supply chain operations Bryan Mohally said the company is “committed to Ireland,” having first arrived here in the 1930s.
“We will explore alternatives for the Cashel site,” Mr Mohally said, “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.”