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| Pfizer's principal plant at Ringaskiddy, by Cork Harbour, where it began operations in 1969 |
Pfizer Ireland, a unit of the world's biggest pharmaceutical company Pfizer Inc., announced today that following a review of its Irish operations the company is to close one of its manufacturing units at Ringaskiddy, County Cork and sell its manufacturing units at Little Island and Loughbeg, with over 500 jobs affected.
Staff were informed this morning that the Ringaskiddy unit will close by the end of this year with the loss of 65 jobs, after the company was forced to abandon plans to produce a new anti cholesterol drug at the plant which had been built at a cost of $90m. The company spent $800m developing the torcetrapib drug.
Pfizer cancelled tests of torcetrapib designed to replace the powerhouse anti-cholesterol Lipitor, following safety concerns arising from clinical tests. Pfizer hasn't introduced a blockbuster - defined as a $1 billion plus annual revenue earner - since it launched the erectile dysfunction drug Viagra in 1998.
Some manufacturing at Little Island and all manufacturing at Loughbeg will be phased out next year and in 2009. The Loughbeg, Cork plant was formerly a Warner Lambert operation.
The company said it plans to sell the operation at Little Island as well as the Loughbeg plant as going concerns, hoping to preserve jobs at these two locations. Pfizer says it has successfully completed a number of such sales of facilities in Europe and the US and it will be working closely with the IDA on the matter.
In a statement the company said around 180 employees at Little Island and about 300 at Loughbeg would be affected.
A spokeswoman for Pfizer said the company hopes to replace the 65 jobs in the other three Pfizer plants at Ringaskiddy, and some staff may have to take voluntary redundancy.
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| Pfizer's Loughbeg, County Cork plant |
She said that there are state of the art facilities at the two plants that are being sold because of Pfizer's over-capacity issue, and that the company believes they would be attractive to other firms.
Terry Lambe, Pfizer's vice president of manufacturing for Ireland and Singapore, said the decisions are part of a plan to align global manufacturing with product demand, and to improve efficiency and cost effectiveness-by reducing the company's global plant network by 50% over four years.
Today Lambe said that the termination of torcetrapib was by far the most significant factor impacting future capacity demand in Ireland.
Other reasons given for reducing capacity at the Irish plants were delays or discontinuation of new products, changing technology and movement of products to lower-cost locations.
Lambe said Pfizer considers Ireland a key manufacturing location and continues to make significant investments here.
Pfizer employees 2,200 people in this country, most of them in Cork.
Martin's Statement
Ringaskiddy, located by the western shores of Cork Harbour is in the political constituency of the Minister for Enterprise, Trade and Employment Micheál Martin, T.D. Two weeks ago, US mobile phone giant, announced plans to close a software centre, also in Martin's constituency, with the loss of 350 jobs.
Martin, in a statement, said today:
I have been fully briefed by the vice president of Pfizer 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, torcetrapib, Pfizer is now implementing the outcome of a major review of production facilities worldwide.
As part of this review 65 jobs will be lost in Pfizers in Ringaskiddy. In addition two of the facilities, the API operation at Little Island employing 180 workers and the Loughbeg plant employing 300 people, are to be put up for sale as a going concern over the next 2 years. The vice president pointed out that the company has successfully sold on such plants in the past.
This is very disappointing and I have been assured that the company will be offering every support to these workers, in addition FÁS will make contact with each of these individuals to assist them in seeking alternative employment.
In addition two other facilities, the API operation at Little Island employing 180 workers and the Loughbeg plant employing 300 people, are to be put up for sale as a going concern over the next 2 years. The vice president pointed out that the company has successfully sold on such plants in the past.
These are difficulty times for the workers and their families. The Government’s priority, together with the IDA is to save these 480 jobs by supporting Pfizer in its efforts to secure the sale of the plants.
It is worth noting that Pfizer is shedding 10,000 of its employees worldwide. Pfizers plants in Cork and Dun Laoghaire remain pivotal to the company.
The recent decision of Pfizer to initiate a project for a new biologicals small scale facility in Cork, with the support of the Government, is significant and has potential.
Pfizer continues to invest in its Irish facilities and are clear 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 to secure the future of Pfizer’s Irish operations.
