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| Allergan's main Irish plant, in Westport, Co. Mayo. |
The 360 staff of the US-owned Allergan plant in Arklow, County Wicklow, were told today that the plant will be shut down.
Allergan, which makes the popular anti-wrinkle treatment Botox, will report its 2007 results today and its expected to announce that the Arklow plant which manufactures silicone breast implants, will transfer production to a plant in Costa Rica over the next two years.
Allergan's main Irish plant is at Westport, County Mayo and currently employs 750 personnel in the manufacture of Sterile Pharmaceutical products for the global ophthalmic and neurological market. It is the largest Allergan manufacturing facility worldwide. The Arklow plant was opened in 1989 by global healthcare company Inamed, which Allergan acquired in 2006.
In April 2003, the then Minister for Enterprise, Trade and Employment Mary Harney announced a €7.4 million investment over the following five years in Arklow, with the support of IDA Ireland.
The new investment was to establish the Irish operation as the Global Centre of Manufacturing Excellence for silicone breast implants and as a key strategic site within Inamed's global operations.
Harney confirmed that the investment would support the anticipated creation of over 200 new jobs and she said:"This investment further consolidates Inamed's Irish operations, based in Arklow, increases Ireland's role in the company's global R&D strategy and raises the stature of the operation within Inamed. The management team and workforce are to be congratulated for winning this investment against intense competition from other Inamed sites. The Irish management, together with IDA Ireland, were successful in persuading Inamed that Arklow was the most suitable location to develop the scale and expertise required by this investment"
Last week, Allergan said in response to a report by Public Citizen, an advocacy group founded by Ralph Nader, which had filed a petition with the U.. Food and Drug Administration (FDA) requesting labeling changes for botulinum toxins marketed in the United States, because of a claimed fatality involving Botox, that it was not true..
"Since its approval, over a million people have been treated with Botox Cosmetic. In its entire history, there has never been a single reported death where a causal link to Botox Cosmetic was established,"the company said.
Allergan has more than 7,500 employees at 100 global locations.
Allergan Statement:
Allergan Inc. today announced the phased closure of its manufacturing facility in Arklow, Co. Wicklow. The plant, which produces breast implants for the global market, will phase out production over the next two years, with the loss of 360 jobs. Allergan currently expects to incur restructuring and other transition related costs beginning in the first quarter of 2008 and continuing up through 2009 of between $60 million and $65 million.
Commenting on the announcement, Raymond Diradoorian, Executive Vice President, Global Technical Operations Allergan, said: "For economic and operational reasons, Allergan will consolidate the manufacturing of its breast implant products to the company’s state-of-the-art facility in Costa Rica. This new facility, which was constructed in 2006, has the capacity to meet current and future production needs to the highest quality specifications. This decision has been carefully deliberated and while difficult, has been made necessary by the high level of investment required to maintain competitiveness at the Arklow manufacturing location."
Allergan remains strongly committed to its other Irish operations where it employs over 750 people at its Pharmaceutical Plant in Westport and approximately 70 people at the Company’s European Shared Services Centre in Dublin. Allergan has invested over $150 million in the last five years to expand the Westport facility. Allergan has also recently undertaken some late stage development work for new products to be manufactured at the Westport site for the global product portfolio. The Shared Services Centre in Dublin provides strategic business support functions in the region including customer services, logistics, planning, distribution, packaging design, treasury, legal and information systems support.
Allergan will now enter into discussions with employees and the Trade Union to agree on the phased closure of the Arklow facility by 2009.
Commenting on the closure of the facility, Paul Moody, General Manager, Allergan Arklow said: "This is a sad day for all of us here in Arklow. We have a hard working team here and our employees have responded well to our increased production needs in recent years. However Allergan needs to look to the future needs of our customers. Increased demand means that we have to move manufacturing to a site that has the capability to meet this growing demand. Our plant in Costa Rica is a modern facility which will meet the future needs of Allergan’s breast implant business."
