OVER 500 NEW JOBS FOR CLONMEL GUIDANT CORPORATION TO LOCATE IN FORMER SEAGATE BUILDING "GLOBAL LEADER IN THE MEDICAL DEVICE INDUSTRY"

Mary Harney, Tánaiste and Minister for Enterprise, Trade and Employment today (Monday 6th July, 1998) announced a 518 New Job, IR£15.7m, IDA Ireland supported project for Tipperary. Guidant Corporation are to establish a medical device facility in the former Seagate building in Clonmel, Co. Tipperary. Over 150 of these jobs will be recruited within the next twelve months.

Making the announcement in Clonmel, the Tánaiste said "This project is welcome news for Clonmel as Guidant Corporation is to create 518 new jobs and will located in the former Seagate building. It is a significant tribute to the efforts of the Clonmel Task Force. Already in April of this year I was pleased to announce the creation of 200 new jobs with the expansion of Clonmel Healthcare.

The Clonmel Task Force has now completed its work. Theirs was a job well done which has produced excellent results. I would like to take this opportunity to formally express my appreciation to Mr. Ed Gleeson, Chairman of the Task Force, the members who worked tirelessly in producing its report and to all those who contributed to its work".

"I can assure the people of Clonmel that the industrial development agencies will, in their ongoing efforts to secure further industrial development for the area, continue to build on the co-ordinated approach so successfully adopted by the Task Force" continued the Tánaiste.

Guidant has purchased the former Seagate building in Clonmel, which will be refurbished over the next six months as a state-of-the-art medical device facility. To achieve a speedy start-up, a top level executive from the parent company has been appointed as Managing Director of the Irish operation, and recruitment of the management team is already underway. Over 100 production/quality control people will be taken on over the next twelve months. Guidant will also be looking for 46 people with engineering and technical qualifications and experience.

"The availability of a modern prestigious facility, with extensive cleanroom capacity and laboratory space, together with the reputation of the Clonmel workforce were key factors in attracting Guidant to Clonmel, as it enables them to get a highly sophisticated world class operation up and running within the shortest period of time. This project is a major addition to Ireland's medical devices sector - a very stable industry which has proved over the years that it can operate successfully from regional locations" stated the Tánaiste.

The Clonmel operation will produce a range of medical devices for the treatment of illnesses for the cardiovascular market world-wide, estimated at £6 billion per annum and growing at 15%.

The project will initially involve the manufacture of pacemakers and defibrillators - both products addressing the problem of abnormal heart rhythms. Pacemakers are used when the heart's electrical mechanism operates at too slow a rate to sustain normal activity and replaces the heart's normal rhythm. Defibrillators are used when the heart beats too fast, to continuously monitor the heart beat and deliver calibrated electrical shocks when the heart is beating in a rapid uncontrolled fashion.

While Ireland has a strong base of companies in interventional cardiology, the entry of Guidant, a major player in Cardiac Rhythm Management (pacemakers and defibrillators), is a milestone in the progress of the medical device industry here. There was strong competition for the project from the USA and Europe and the presence of the Clonmel facility, together with the availability of the Seagate workforce were a major assistance to IDA in securing the project for Ireland.

"The development of industry in the State has been greatly assisted by transfers from the structural funds of the European Union. In particular the EU contributes part of the grant aid for employment and training awarded by IDA Ireland. I wish to acknowledge, on behalf of the Government, the very significant contribution these funds make, through the Operational Programme for Industrial Development, not only towards stimulating industry to locate and to develop in Ireland, but also to generating major employment opportunities and technological development in the economy" concluded the Tánaiste.

Guidant Corporation headquartered in Indianapolis, Indiana, USA, is a global leader in the medical device industry. Created in 1994 by spin off from Eli Lilly and Company of its medical device business, Guidant has grown its sales from £656 million in 1995 to £935 million in 1997 - an increase of 40%. With manufacturing operations in Minneapolis/St Paul (Minnesota), Santa Clara and Menlo Park, (California), and Puerto Rico , Guidant employs over 6,000 people world-wide. It is a public company, quoted on the New York Stock Exchange and has a current market capitalisation in excess of $10 billion.

Guidant is a world-wide leader in interventional cardiology (stents and angioplasty balloons) and device implants (defibrillators and pacemakers) - two fast growing areas in the health care sector. It is comprised of three divisions - Cardiac Rhythm Management, Vascular Intervention and Cardiac and Vascular Surgery for minimally invasive surgical products. These areas are the most dynamic sectors of the whole medical device market. Guidant is heavily focused on research into new products and applications and spends in excess of 15% of revenues in R & D each year.