Allergan closes doors on Irish plant
pharmafile | May 8, 2009 | News story | Manufacturing and Production |Â Â AllerganÂ
US drugmaker Allergan has brought the curtain down on its manufacturing facility in Arklow, Ireland, months ahead of schedule.
The axe fell on the plant in January 2008, when Allergan said it would shift production to Costa Rica at the expense of 360 jobs, because of the high level of investment that would be required to maintain competitiveness at the Irish plant.
At the time the pharmaceutical company gave a two-year timeframe for the shutdown and said it would cost between $60 million and $65 million.
The Arklow facility manufactured mainly silicone and saline breast implants, but also supplied components to other Allergan facilities around the world. All production activities at Arklow have now ceased, and any remaining operations will wind down this month.
"We are pleased that we closed our Irish facility below budget and ahead of time and are supplying all the world markets with quality products from our low-cost base in Costa Rica," said David Pyott, Allergan's chairman and chief executive, in a conference call.
The Arklow facility was acquired as part of Allergan's purchase of healthcare company Inamed in 2006.
Allergan still operates a pharmaceutical plant in the western Irish town of Westport, which employs 750 people and manufactures sterile pharmaceutical products for the global ophthalmic and neurological market. This is one of the drugmakers biggest manufacturing facilities worldwide.
In addition, Allergan's, European shared services centre is based in Dublin, which has 70 staff.
Despite the closure, Ireland's pharmaceutical sector continues to give the country some insulation from the broader effects of the global recession.
In his latest commentary document, National Irish Bank chief economist Ronnie O'Toole said that the expected 6% shrinkage in Irish exports in 2009 will be "modest relative to the declines being faced in other countries, due to Ireland's mix of products less sensitive to recessions," such as pharmaceuticals.
Ireland accounted for almost two in five new pharmaceutical jobs in Europe in 2008, and one third of all medical devices and financial sector jobs in the region.
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