Roche takes €130m writedown on Clare manufacturing plant

Swiss pharma giant Roche took a €130 million writedown last year following its decision to close its Co Clare manufacturing plant in Ireland, newly-filed accounts show.

The oncology drug specialist announced the closure of Clarecastle facility last November with the loss of 240 job losses.

The closure, which was part of a broader restructuring programme that saw the group cut 1,200 jobs and close four manufacturing plants worldwide, left the company with a sales operation in Ireland that employs about 90 people.

Accounts recently lodged with the Companies Registration Office for Roche Ireland Limited, which makes active ingredients that are sold to other Roche operations, show the Irish subsidiary reported a €130 million loss last year, compared with a €9.59 million profit in 2014.

Impairment charge

The company directly attributed the loss to a €130.9 million impairment charge related to property, plant and equipment connected with its Irish manufacturing facility. Roche said in November that it intended to wind down operations at Clarecastle gradually with the plant expected to close between 2018 and 2019, unless the site is acquired in the meantime.

The company said talks with a potential buyer earlier this year had ended without agreement. A decommissioning provision of €4.46 million was recorded for the site in the latest accounts.

The Clarecastle facility was initially established in 1974 as Syntex Ireland but later became part of Roche following its $5.3 billion acquisition of the Syntex Corporation in 1994.

The accounts show Roche Ireland Limited had net assets of €423,000 compared with €91 million a year earlier. Revenue totalled €74.2 million, down from €79.2 million in 2013.

Roche Ireland Limited said staff costs, including wages and salaries, totalled €27.5 million last year, up from €24.8 million a year earlier.

The Irish subsidiary received a capital contribution of €28 million from another Roche group entity since November and continues to receive funding “on an ongoing basis” from its parent.

The company's Irish unit also received a €1.45 million capital grant from IDA Ireland, which the group said it had repaid in full as it was no longer able to comply with the terms of the agreement under which the grant had been issued.