Tánaiste announces Guidant to add 1,000 new jobs in Clonmel

Major investment to offer high quality employment - Harney

Tánaiste and Minister for Enterprise, Trade and Employment, Mary Harney T.D., announced today (Tuesday, 22^nd June 2004) that Guidant Corporation of the US, a global leader in medical technology, is significantly expanding its Irish manufacturing facility in Clonmel, Co. Tipperary.

The Tánaiste’s announcement comes as a major boost for the region as Guidant expects to create 500 new high quality manufacturing jobs over the next three years, with plans to add a further 500 new jobs as the operations develop.

The investment is supported by IDA Ireland and recruitment will commence in 2005, with the jobs requiring Leaving Certificate and third-level diploma, certificate and degree qualifications. It will also result in the construction of a new 125,000 sq. ft. building at the site.

Guidant designs, develops and manufactures minimally invasive products for the treatment of cardiovascular disease. The expansion in Clonmel is the result of Guidant now entering the higher value, next generation of stents. These new products are coated with a drug and when the stent is inserted in the body the drug is locally administered in a controlled release method to prevent the re-blocking of arteries. The Clonmel operation will have responsibility for preparing the new products bringing them from the R&D stage in the US to first time volume production.

Announcing the investment the Tánaiste said: “This project will involve the manufacture of sophisticated, high value, development-intensive products for which Guidant is a world leader. The investment represents an important endorsement of Ireland’s on-going ability to attract large scale, technology driven projects. Securing this project for Ireland demonstrates yet again the country’s continuing competitiveness and sends a very positive signal to other international companies that Ireland is a leading location for such investment. When fully completed this development will mean that Guidant will double its local spending in the Irish economy from its current level of over €80 million per annum.”

The Tánaiste added: “The new jobs will be in a broad range of areas including production, operations and quality control. There will be a requirement for people with qualifications in engineering, chemistry, biology and material sciences such as metals and polymer technology. The high value of this project is reflected in the above average wage levels and the new expansion brings significant new employment opportunities for the people of Co. Tipperary and the surrounding counties.”

The Tánaiste also congratulated the Guidant management and employees on their recent selection as one of the best companies to work for in Ireland in 2004. The company’s selection was as a result of the European Commission’s competition designed to promote best practices in the workplace.

The Guidant Clonmel facility currently employs over 1,000 people. It was established with IDA support in 1998 as a Cardiac Rhythm Management manufacturing site for pacemakers and defibrillators. In 1999 it added a Vascular Intervention manufacturing operation for bare non-drug stents, balloon catheters and associated products.

Mr. Ger Cronin, Vice President and Managing Director of Guidant in Clonmel said “the availability of the facilities, the excellent site and the support of IDA Ireland and the people of Clonmel have been critical to our success.” He particularly noted that the performance, commitment and high skills of the management team and workforce were the fundamental factors that influenced the company’s decision to make this investment in Clonmel. “The developments announced today give us a great future here,” he added.

Ms. Mary Buckley, IDA’s Area Director for the South Region said that Guidant as one of the top 10 medical technology companies in the world is an important investor in the region. She said that this investment had been secured for the region against intense competition and congratulated Ger Cronin his management team and the staff at the Clonmel facility for their success in winning it. “It will be a major boost to the region and its future development. IDA wishes to acknowledge the support given by the many local organisations in working with the company to win this additional investment,” said Ms. Buckley.

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Notes for Editors

About Guidant

Guidant Corporation, headquartered in Indianapolis, Indiana, employs over 12,000 people at 15 locations worldwide. It has three business groups – Cardiac Rhythm Management (CRM) with products such as pacemakers and implantable defibrillators; Vascular Intervention (VI) responsible for stent delivery systems, catheters and guidewires; and Emerging Therapies focusing on new technologies such as less-invasive cardiac surgery, heart attack and stroke prevention and improved treatment of abdominal complications.

Guidant markets its products in almost 100 countries and its revenue for 2003 was US$3.7 billion, with a net profit of US$330 million. It spent 14% of revenue (€518 million) on research and development and more than half of its revenue has been derived from products that are less than one year old.

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