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| Pfizer's principal plant at Ringaskiddy, by Cork Harbour, where it began operations in 1969 |
The world's top pharmaceutical manufacturer Pfizer, which first opened a plant in Cork in 1969, is reported to be planning a $500 million (€353 million) expansion of a new biological facility there.
Last February, Pfizer announced that following a review of its Irish operations the company planned 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 that the Ringaskiddy unit would 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.
The drugs giant had identified a site in Shanbally, beside its existing operations in Ringaskiddy, for a $175 million investment that would create roughly 100 jobs. International construction firm Jacobs Engineering has already been contracted to build the facility.
Pfizer is reported to be now planning to make at least an additional $500 million investment at the site so that it can commence large-scale commercial production of specialised products that will focus on oncology and chronic pain treatment. The drugs will be derived from living cells, rather than the chemical compounds traditionally used in pharmaceutical production.
Pfizer is reported to have agreed with US company Fluor to design the plant at Shanbally. It is expected to be fully operational by 2012 and employ over 400 people.
Terry Lambe, Pfizer's vice president of manufacturing for Ireland and Singapore, said last February that the restructuring decisions were 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.
He 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 considered 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.
