Amgen to invest €1.3bn in Cork

The world's biggest biopharmaceutical company, Amgen, is to invest up to €1.3 billion in a manufacturing operation in Co Cork.

The Californian company conducted a detailed examination of a site in Carrigtwohill in advance of a recent preliminary decision to locate the project there.

A final decision is imminent and certain senior sources believe a formal announcement might be made as early as next month. A large number of jobs are involved.

Amgen's chief spokeswoman said that talks were underway with IDA Ireland and that an Irish location was still in contention with Switzerland and Singapore.

However, informed Irish sources believe the project is very likely to go to Cork, subject to confirmation by the Amgen board. The deliberations are said to be at a very sensitive stage.

Plans for the road and rail infrastructure around the site at Carrigtwohill are said to have had a significant bearing on the preliminary decision to locate the project there.

In addition, many of the world's biggest drug and medical companies have set up operations in the south west region. These include Pfizer, Boston Scientific and GlaxoSmithkline. Amgen is based in Thousand Oaks, California, and it employs 14,000 people worldwide.

The Nasdaq-quoted company is on the Fortune 500 list of top US groups. It uses DNA and molecular biology technology to make drugs for the treatment of cancer, chronic kidney disease and other conditions. Amgen had sales of $10.6 billion (€8.98 billion) in 2004 and reported net profits of $2.4 billion.

Amgen's spokeswoman, Mary Klem, said that Ireland was on the company's shortlist as a potential location for a new manufacturing plant.

"In the past couple of years, we've evaluated a number of potential global locations including Ireland, Switzerland and Singapore," she said.

"I can confirm that discussions have taken place between Amgen and IDA Ireland about a potential Irish location. I need to emphasise that no decision has been made."

The company established small sales team in Dublin at the end of 2003 to market its drugs in the Irish market. Accounts signed off on October 25th show that Amgen Ireland Ltd had sales last year of €3.57 million and pretax profits of €164,000.

A manufacturing operation would be on a much larger scale, given the high level of investment required to set up complex manufacturing, logistical and administrative systems.

A large component of Amgen's work is in drug research and development, an area that the Government and IDA Ireland have gone out of their way to encourage in recent times.

However, it is unclear whether the project would involve a research unit.

An IDA Ireland spokeswoman would not discuss the Amgen project. "We wouldn't have any comment to make on any discussions we may or may not be having with this company at the moment.

Cork received a further jobs boost yesterday when an IFSC-based fund administration joint venture between AIB and the Bank of New York said it would locate 200 new jobs there as part of a €13.5 million investment.

The jobs at AIB-BNY Securities Services (Ireland) Ltd, which has $162 billion worth of funds under administration in the IFSC, will bring its total employment to 700 by 2008.

Its new centre will open next April in Cork Airport with 50 jobs initially.

The joint venture had a turnover last year of €53.12 million and pretax profits of €14.12 million.