Adjournment Debate on Pfizer – Reply by Minister for State Michael Ahern

Thursday 8 February 2007

That the Minister for Enterprise, Trade and Employment make a statement to the House on the implications of today’s announcement by the Pfizer company on its operations in this country, and the effect this announcement will have on the economy of the Cork region.

Dan Boyle

I would like to thank the Deputy for raising this matter on the Adjournment.

My colleague the Minister for Enterprise, Trade and Employment Micheal Martin TD has been in on-going discussions with the company prior to today’s announcement. He met with the Senior Management of the company last Tuesday evening at their request, and was fully briefed by the vice president on the company’s future plans globally and in Ireland.

Following the non-approval by America’s Food and Drug Administration of the company’s latest cholesterol drug(in Dec 2006), the company is now implementing the outcome of a major review of production facilities worldwide. As part of this review 65 jobs are likely to be lost in the company’s facilities in Ringaskiddy by the end of 2007.

This is very disappointing news for the workers and their families but instead of scaremongering and predicting gloom and doom for Cork the workers are best served I believe by the Government and IDA assisting Pfizer in every way possible to ensure that these 65 people get alternative employment. Pfizer themselves also realise their responsibilities in this area as they have assured the workers that every assistance will be given to them . Fas have also been contacted to make direct contact with the workers so their needs can be met.

In addition to the 65 redundancies, the operation at Little Island employing 180 workers and the Loughbeg plant employing 300 people, are to be put up for sale as going concerns over the next 2 years. The vice president pointed out that the company has successfully sold on such plants in the past. The Government’s priority is to save these 480 jobs by supporting the company in its efforts to secure the sale of the plants.

I should point out that the company is shedding 10,000 of its employees worldwide. However, the company’s plants in Cork and Dun Laoghaire remain pivotal to the company. Pfizer is heavily committed to Ireland, employing close to 2,300 people and accounting for a capital investment of well in excess of €1 billion.

The recent decision of the company to initiate a project for a new biologicals small-scale facility in Cork, with the support of the Government, is significant and has potential.

The company continues to invest in its Irish facilities and is clear that Ireland remains a key manufacturing location. New technologies are changing the way drugs are being manufactured and €375 million has been invested in new technology very recently to secure the future of the company’s Irish operations. Recent investments include sterile operations as well as new technology and two process development facilities and as I have previously stated the initiation of the project for a new biologicals small scale facility in Cork is also underway.

I should point out that the company’s manufacturing operations in Ireland have not been previously impacted by restructuring.

The termination of the company’s experimental cholesterol drug by the FDA in the USA, is by far the most significant factor impacting future capacity demand in Ireland. The cumulative impact of these events has resulted in the in-depth review of the company’s operations in Ireland, as well as worldwide, which have concluded that the sale of the two plants as going concerns are required to bring capacity in line with future demand .The Irish plants will still be responsible for 33% API production for the global market after 2009 .

I understand that the company are confident that the steps that they are taking will better align their operations in Ireland with their future needs and strengthen their manufacturing base for future growth.

The traditional Pharmaceutical sector is experiencing huge change worldwide .

Ireland is the top location in Europe for life sciences projects and 13 of the top 15 Pharmaceutical companies have operations here. They employ approximately 40,000 people including 18,000 in the pharmaceutical sector.

In relation to investment in Cork generally, I can assure the Deputy that the Government through their agencies are continuing to promote Cork for employment opportunities.

New investment announcements in the region made over the last year include GlaxoSmithKline, Eli Lilly, Centocor and Amgen. Amgen recently announced 1,100 new jobs at its facility at Carrigtowhill, which is of particular importance, being a major global project that has chosen Cork as its development location.

The Eli Lilly project was announced as recently as last December. The Centocor facility is now built. Overall these companies will employ 1630 new people in the Cork region by 2010 and 2011.

Enterprise Ireland is also actively involved in assisting its client companies to grow and expand their businesses in Cork. Last year, Enterprise Ireland made payments of almost €9 million to its client companies in County Cork.

All these projects will have a significant positive effect on the economy and the people of the Cork region in the future.

ENDS

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