French pharmaceutical company Servier to invest €184 million in Kilkenny and Arklow

Irish
French pharmaceutical company Servier to invest €184 million in Kilkenny and Arklow
By Finfacts Team
Oct 27, 2006, 09:34

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Servier is the 14^th largest pharmaceutical company in Europe and 34^th in the world. Established in 1972, the group is controlled by the Servier Foundation and is headquartered in Paris. Its founder Dr. J. Servier is respected in the industry for his commitment to research and to his staff. The Group currently sells in 140 countries across 5 continents using its own sales force in each country. Turnover for the year ending September 2005 was €2.8 billion, up 14% on 2004. Current employment is 17,500, of which 2,500 are in R&D, and it reinvests 25% of turnover per annum in R&D.

Minister for Enterprise, Trade and Employment Micheál Martin TD today announced that Servier, of Paris, France is to invest a combined €184 million, with the support of IDA Ireland, to establish a new manufacturing pharmaceutical facility at Belview, Co. Kilkenny and to expand its existing operation in Arklow, Co. Wicklow.

Servier is a research based company that concentrates on the development of cardiovascular, cancer, diabetes and central nervous system drugs. Established in Arklow in 1985, Servier employs 206 people in the manufacture of pharmaceuticals for supply to international markets. Two of its existing drugs manufactured in Arklow, the diabetes drug Diamacron and the hypertension drug Coversyl, rank in the top five in Europe in their class.

This will be the first company for the IDA Belview Site which is located on the border of Kilkenny and Waterford. Servier is to invest €115 million in establishing a bulk active pharmaceutical ingredients facility at Belview. It will manufacture half the active ingredients for four products used in the treatment of osteoporosis, depression, angina and hypertension, and will supply both the Arklow facility and the parent company with its products. It will also act as a strategic back-up facility to the main plant in France and a new product launch site where Servier plans to manufacture 50% of all new products emerging from R&D. 155 new jobs will be created in this facility over the next seven years.

Servier is also to invest €69 million to expand its Arklow facility to enable the company to significantly increase its production of existing products for hypertension, angina and type two diabetes and introduce three new pharmaceutical products. 112 new jobs will be created over five years, with both facilities offering positions in production, quality control and support areas such as maintenance, logistics, IT and administration.

Martin said “This is the first investment for Belview and we are delighted that it is coming from such a highly respected company within the pharmaceutical industry. Servier is a global company with an excellent reputation for its commitment to research and development, reinvesting 25% of its annual turnover in R&D. Belview is a key strategic site developed by IDA Ireland to attract a cluster of cutting-edge multinational pharmaceutical companies to the South East and today’s news is a very promising beginning. Servier prides itself on the design and quality of its buildings around the world, as is evidenced by the Arklow plant, and with a company the calibre of Servier as Belview’s flagship occupant, further high-value investment will undoubtedly follow.”

“Servier’s manufacturing facility in Arklow is thriving and this expansion is a strong indicator of the company’s success here to date. The expansion of its facility is necessary to cater for the increasing demand for its existing products and the introduction of new products to be manufactured here. Today’s announcement will make Servier’s Irish operations strategically important within the company and is very welcome news for the employees of Servier in Arklow” added Martin.

Servier said “This investment is a major part of Servier’s strategy for the future growth of its worldwide business. Our decision to choose Ireland was made following careful appraisal of all our options for this investment. We are very pleased with the standard and performance of our facility here and the encouragement shown to us by the Irish Government and its unwavering support of innovation. We know that we can find the necessary life sciences capabilities and skills we need in Ireland. The new pharmaceutical facility will be pivotal in Servier’s future global operations and will be further integrated with the company’s global activities as a result.”