More than 300 jobs are being cut at a pharmaceutical plant in Waterford, it has been announced today.
Teva Pharmaceuticals, one of the sector’s top 20 firms, called employees into a meeting at its manufacturing plant this morning to announce the lay-offs. A total of 315 out of the 730-strong workforce are being let go.
The firm, formerly known as IVAX, makes inhalers and tablets and is among the top 20 pharmaceutical companies and one of the largest generic pharmaceutical companies in the world.
In a statement, Teva Pharmaceuticals said one of its Waterford-based plants, the Oral Solid Dose (tablet manufacturing) facility, would be be phased out over the next year.
The gradual closure of the Waterford plant is to start in the first quarter of 2010, with the loss of the 315 jobs, the company said, due to "the challenges of operating in a high cost and difficult economic environment in Ireland".
The company said it is "committed to maintaining and developing the three remaining business units in its strategically important Irish operation".
Commenting on the closure, Dr Tom McCabe, managing director of Teva Pharmaceuticals Ireland, said: “It is with deep regret that I announce the phasing out of one part of our business here in Waterford. My first thoughts are for the people who will be affected by this decision. We will spend the next year making sure that we do everything we can to help our colleagues who will be affected.
"In addition to a generous redundancy package, we will provide training and outplacement services to those people who leave the company as a result of this decision," he said.
The IDA-backed Waterford plant has three production plants and a research and development lab. Last March Teva appeared to demonstrate commitment to its Irish operation with a €65 million euro investment.
The Teva losses compound the unemployment crisis in the region after hundreds of lay-offs at Waterford Crystal, electronic components firm ABB Transformers and contact lens maker Bausch & Lombe.
Responding to the Teva news, Fine Gael Waterford TD John Deasy called for a more vigorous approach to unemployment levels in the city.
“On an immediate basis, we need to determine from the State agencies like the IDA and Enterprise Ireland, how we maintain the existing jobs left in the city, and what steps they are taking to incentivise additional investment in the area," he said.
“Our Government representatives need to stem the momentum of decline that seems to be gripping Waterford city."
Mr Deasy also called on local State employment agencies and organisations to strengthen the indigenous employment base and focus more on retraining and upskilling.
Waterford Labour TD Brian O'Shea said the news was devastating for those who are to lose their jobs.
"It is incumbent on the Tánaiste and on her Department to liaise closely with management and to leave no stone unturned in the effort to ensure the future viability of the company and to seek to retain every possible job," he said.
"I am also calling on the IDA to redouble their efforts to bring industry to this region in view of this and the many other job losses in the Waterford constituency in recent times."
The bleak jobs news came as latest figures revealed more than 440,000 people are signing on for benefits, bringing the unemployment rate to 12.4 per cent.
The Central Statistics Office (CSO) showed more than 192,000 people had been added to the Live Register in the last year, with 4,321 new people signing on for social welfare payments in August.