Major boost for Waterford - TánaistePotential for 480 new jobInvestor is one of World’s leading Biotechnology CompaniesSignificant endorsement of Government’s Regional Development PolicyMembership of "Strategy Waterford" Announced

Tánaiste Mary Harney announced today (Tuesday 29th May 2001) that Waterford is to be the locatin for a significant new investment project in the bio-technology sector with the potential to create 480 new jobs.

Genzyme Corporation of Cambridge, Massachusetts, US, one of the largest independent pharmaceutical-biotechnology companies in the world, plans to establish, with the support of IDA Ireland, a new manufacturing facility on a 32 acre site in Waterford. "The facility will be the initial project in a manufacturing investment envisioned by Genzyme that could reach € 250 million ( $230m ) and have the potential forcreating up to 480 new jobs over five years", the Tánaiste said.

Genzyme will locate in an existing building, formerly occupied by Luxottica/Rayban, at the IDA Ireland Business Park in Waterford. The facility will be converted and used in the manufacture of Renagel tablets, a product used in the treatment of patients with kidney disease who are on dialysis.

Making the announcement in Waterford the Tánaiste said "the Genzyme facility will be a high quality, high value operation, and will have a major impact in Waterford. The ready availability of the 120,000 sq. ft. (11,148 sq. metres) building, ideally suited to Genzyme’s requirements, was one of the principal factors in the company choosing Waterford," she said. Genzyme expects to require additional production space over time and the IDA has allocated an adjoining 15 acre site for future development of the new Genzyme facility.

Highlighting the importance of this investment the Tánaiste said is was another breakthrough for the Government’s drive to develop the biotechnology industry in Ireland as a key growth sector. "Ireland’s profile in the international biotechnology industry has been greatly enhanced by the Government’s decision to make available substantial funding for biotechnology research through Science Foundation Ireland. In addition, the decision by Wyeth Medica to locate its $1 billion biopharmaceutical campus in Dublin, which is currently under construction, has focused the attention of other major players in the industry on Ireland," the Tànaiste added.

The Tánaiste said that she had long since recognised the need for Waterford to benefit in terms of the attraction of new investment. "Today’s announcement is a major boost for Waterford but a lot more needs to be done to move the local economy forward. This requires a concerted effort from the local communities as well as from central Government. Strong leadership and action, and determined strategic planning from within the community itself will be a key determinant in achieving success."

The Tánaiste also referred to her announcement earlier this year when she established ‘Stategy Waterford’ in recognition of Waterford’s failure to achieve the same success as other major urban centers. Announcing the membership of the Group the Tánaiste said "These members are truly representative of business, local Government, Community Groups and Trade Unions supported by the Government’s Development Agencies. The Tánaiste said she was confident that the Group, which is already busy at work, will play a very important role in developing Waterford as a key location for new business. "Today’s announcement is a very strong endorsement by a world class company that Waterford can offer enormous opportunities to investors," she added

The Tánaiste said "the biotechnology sector offers top quality employment opportunities, especially for graduates in the science areas, as is evident from the fact that many of the jobs in the new Genzyme facility will be for skilled and qualified employees. It also highlights the high value level of activity which such companies generate in the economy and therefore the decision of Genzyme will be of major importance in developing the local economy."

Mr. Mark Bamforth, Genzyme’s senior vice president for corporate operations, said that "Ireland has attracted Genzyme as a location due to its good skills pool and the quality of both its education regime and the infrastructure to support manufacturing operations.Genzyme was particularly attracted to Waterford because of the availability of an excellent premises which allows for a near term start-up and the region’s positive business dynamic reflected in discussions with IDA Ireland, the Waterford Institute of Technology, Waterford Corporation and established local healthcare companies."

The Tánaiste took the opportunity to point out the significance our membership of the EU plays in our continued economic growth. She said "today’s announcement underlines the importance of ensuring that Ireland continues to be an attractive location for foreign investment. Already, at least 140,000 people in Ireland have jobs directly as a result of such investment and, of course, many more spin-off jobs result indirectly. It is timely to recall that these jobs would simply not exist if Ireland was not fully part of the European Single Market.

Enlargement of the European Union will clearly affect the context of Ireland’s trade and investment. In relation to trade, the successive expansions of the European Single Market have brought new opportunities to our companies. Our exports to the EU accounted for over 60 per cent of our total exports last year, reaching over £40 billion ( € 51.2 billion ). Ireland has an open economy, and we can adapt quickly to exploit new European and global market opportunities. I am convinced that the expansion of the EU market to over 500 million people will offer great opportunities for more and better jobs in Ireland.

A positive vote on June 7th in favour of the Nice Treaty will help to ensure that in the future we have many more announcements to rival today’s good news.

Genzyme Corporation was founded in 1981. It employs 4,500 people and had a turnover of € 1,016 million ( $945m ) in 2000. The Genzyme Corporation is comprised of three divisions. In addition to the Genzyme General Division, which markets therapeutic products such as Renagel and diagnostic products services, there are the Genzyme Biosurgery Division, that develops and markets a portfolio of medical devices, advanced biomaterials and biotherapeutics primarily for the cardiothoracic, orthopaedic and general surgery markets and the Genzyme Molecular Oncology Division, that is developing a new generation of cancer products focusing on cancer vaccines and angiogenesis inhibitors.

The planned Waterford facility is part of a broad effort by Genzyme to significantly expand its manufacturing capabilities to meet the accelerating demand for Renagel as the product gains market share and becomes available worldwide. Renagel is Genzymes fastest growing product, with sales expected to reach € 129m - € 140 million ( $120m - $130m ) this year and grow to € 1.08 billion ( $1bn ) a year within the decade. Renagel tablets were approved for sale in Europe in April 2001. It is expected that the Waterford facility will be fully operational and approved for manufacturing by regulatory authorities by mid-2003.

In addition to the tablet manufacture, Genzyme is also developing plans for other manufacturing facilities on the site, these include bulk active pharmaceutical ingredients manufacture and a biological fill and finish operation. The Genzyme Corporation develops and markets therapeutic and diagnostic products and services, focused on the treatment of genetic disorders and other chronic debilitating diseases. It also provides genetic testing services and manufactures pharmaceutical intermediates.

More details on www.genzyme.com

Mr. Nicky Fewer Chairman Ms. Mary Dorgan Human Resource Manager, Waterford Glass Mr. Mike Jennings Regional Secretary, SIPTU Mr. Philip Myler President, Waterford Trades Council Mr. Brendan Cummins Managing Director, IFI Ms. Una Parsons Consultant Mr. Eddie Breen City Manager Mr. Tom O’Toole Business Studies Department, WIT Mr. Tom Clancy Manager, Port of Waterford

The Regional Managers of Enterprise Ireland, IDA FAS will be ex officio members of the Group and Forfas will provide analytical support based on the results of its infrastructure audit.