Some 250 people are to lose their jobs at the Wyeth Medica Ireland plant in Newbridge, Co Kildare, it was announced today.
Wyeth said it had experienced a reduced demand for several products manufactured at the Kildare plant.
Jack Wall, Labour TD
In a statement, the company said it is investing €350 million in its manufacturing facility "to expand future production capabilities for the company's emerging pipeline of pharmaceutical products".
"Wyeth Medica Ireland was assisted in this investment with significant support from IDA Ireland."
It said the Newbridge site will be equipped with new technologies and infrastructure required to produce "the more advanced pipeline products of the future".
"Whilst the Wyeth Newbridge facility prepares for the arrival of these new products, it is experiencing a reduced demand for several current products manufactured at the site. Based on this continuing reduction of volume, it is anticipated that approximately 250 permanent positions will be phased out at the facility between 2006 and 2007."
Declan Finan, managing director of Wyeth Medica, said he was pleased the Newbridge facility had been chosen as one of two global strategic sites for pharmaceutical products.
"But we must face the reality that some of our existing products are experiencing a decline in demand. As a consequence, we must reduce the number of people working at our facility. Wyeth is committed to working closely with employees affected by this situation," Mr. Finan said.
"We are fully committed to exploring re-deployment opportunities as well as providing a severance package for our affected permanent employees. I welcome this substantial investment by our parent company which demonstrates their clear and continued confidence in our facility and our capacity to respond to changing business needs."
Local Labour TD Jack Wall said the announcement was a "huge shock" to the area. "My sympathies are with those 250 workers who have learned today that they are to lose their jobs."
He said State job creation agencies should be instructed to give priority to this area immediately.
Fine Gael's enterprise spokesman Phil Hogan said the announcement shows the traditionally strong pharmaceutical sector is not immune to the rising cost base and declining competitiveness in the economy.
"These losses underline yet again how the Government's casual attitude to declining competitiveness continues to affect industry, particularly the manufacturing sector," Mr Hogan said.