US biotechnology giant Amgen has postponed plans to build an €800 million manufacturing plant at Carrigtwohill, Co Cork.
The plant was due to be completed by 2012 and was to have employed at least 1,200 people, including many science graduates.
Mark Sawyer, Amgen Technology Ireland
The company said in a statement it had taken the decision to "postpone indefinitely" its plans for Co Cork "following an updated review of its business plans".
It most of the 79 staff, 65 of whom already work in Cork, would be offered redundancy but that the company would maintain ownership of the site in Carrigtwohill
"We understand that this is a very disappointing development for our employees, the government, the neighbours around our site and the broader Cork community," said Mark Sawyer, general manager and vice president of Operations, Amgen Technology Ireland.
"This decision is based purely on developments relating to Amgen's global business and is in no way reflective of the business environment in Ireland or of the high calibre staff we have hired."
In August the company announced plans to cut the company's workforce by 12-14 per cent but said the move would not affect its Irish operations in Cork. Earlier this year Amgen announced a two-year delay in the development of the Cork plant, which was initially due to go into production in 2010.
Minister for Enterprise, Trade and Employment, Micheál Martin said he was "deeply disappointed" by the announcement.
"Our immediate priority must be to offer every possible support to the 79 existing Amgen staff. The job creation agencies of the State will work with these employees to find them alternative jobs."
Fine Gael's spokesman on enterprise, trade and employment Leo Varadkar said: "I am calling on the Government to immediately complete the infrastructural development locally around Carrigtwohill so that the site can be used for alternative investors.
"While the pharmaceutical industry and the multinational sector in Ireland remain strong, this announcement once again demonstrates the need for the Government to develop a new long-term economic strategy in Ireland, based on upskilling, restoring competitiveness, and supports for indigenous industry and sustainable development."
Labour's spokesman on enterprise, trade and employment Willie Penrose said: "It had been hoped that this project would compensate for the extensive job losses suffered by Cork over recent times in plants such as Motorola, but now it is clearly doubtful as to whether it will now provide a single job.
"The taxpayers are also entitled to clarification from the Minister for Enterprise, Trade and Employment as to what grants or other financial supports have been provided to Amgen to date and what is the position now in regard to these payment."
Studies which revealed that the company's two top-selling anaemia drugs, Aranesp and Epogen, raised the risk of death when given in high doses resulted in a 26 per cent drop in Amgen's share price this year.
The two products account for almost half of the company's overall revenue.
Amgen, which is based in Thousand Oaks, California, intends to cut capital spending by €1.9 billion over the next two years.
It also plans to close certain production operations and rationalise other facilities in an attempt to improve efficiency.
