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Dublin: 12 °C Saturday 25 May, 2013

280 jobs lost as Wicklow pharma plant closes

The Rathdrum facility will close by the end of 2015.

EMPLOYEES AT MSD’s Wicklow operation have been told the company is to cease operations at the site by the end of 2015.

All 280 jobs at the facility will be lost.

Manufacturing activities will be phased out in 2014 but no staff reductions are expected until the end of next year.

In a statement, MSD said the decision comes as the firm reviews its worldwide manufacturing capabilities “that has resulted in sites being sold, closed or consolidated in all regions of the world”.

“Rathdrum has been a significant manufacturing site since 1961 and has a long history of operational excellence,” according to John Smith, site director. “The proposal to cease operations is not a reflection of the site’s performance or the highly skilled people working there. The proposed action is the result of MSD’s ongoing review of the global manufacturing capacities needed to support its growth, business goals, product portfolio and pipeline.”

Consultation between employee unions and management is expected to begin shortly. MSD said its staff will be treated with “dignity and respect”.
“[We] will provide appropriate support between now and the cessation of manufacturing activities at the site.”

As a result of the proposed closure, the company plans to relocate products manufactured in Rathdrum to MSD sites in Ballydine, count Tipperary and Singapore, as well as to third-party manufacturers.

The Department for Jobs, Enterprise and Innovation along with IDA Ireland will now look for a buyer for the facility and MSD said it is committed to “seeking an alternate future for the site”.

The company’s operations in Carlow, Cork, Dublin and Tipperary are not impacted by today’s announcement.

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Comments (31 Comments)

  • This is why I get annoyed when they jump up and down over 40 new jobs in some it firm, Austerity is not working we have not turned any corner if anything its getting worse two years into the FG Labour bankrupt the people plan. Sympathy’s to the 280 workers

    Reply
  • Awful news… It’s day after day..

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  • South Wicklow region still has not recovered from the closure of Allergan in 2009 with the loss of over 360 jobs. A number of these employees were lucky at the time to get employment in the Rathdrum facility. Now they are back to facing redundancy again.
    Successive governments have not delivered on promises for this region.
    That will be another state of the art manufacturing plant lying empty for Heaven knows how long.
    So sad for these employees and their families.

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    • Brenda
      That plant is anything but a state of the art facility. Why do you think it’s closing.

      Reply
    • I’m not sure how much more the people can take. Gardai are protesting, nurses, teachers, unemployment is going through the roof and emigration has become part of Government policy. I am not a member of supporter of any political party. I am father and husband, a normal guy who always worked hard and paid my taxes. I believed our leaders, I trusted them, I honestly was naive enough to think that because we employ them to represent us that they would do their best and wanted the best for us. I was fooled, I am a fool to have believed the spin, the lies, the media sound bites, the promises. I have lost my job like many others and I had to leave my country, I doubt I’ll ever return because it seems that the political elite and bankers have destroyed it beyond repair, not just for my generation but for my children also. It breaks my heart to leave, I deeply love Ireland, it is my home but a home without a real government, laws, accountability, leaders. I still follow Irish events and listen to the radio on the net, there was a song on 2fm this morning that brought tears to my eyes, Ive seen it on a few forums also. Its the closest thing I’ve heard that captures the true story, the traitors and the lives they have destroyed. They dont give a **** about us and never will, they care about their pensions and huge salaries, Ill tell you one thing they wont ever know the worry of the esb bill coming or how they are going to afford food for the week.

      http://www.youtube.com/watch?v=edfNeMIm2Jk

      P.S FF are topping the polls again? How can we expect change if we keep doing the same thing over and over again.

      Reply
    • @Paul Moore: Well said mister, and sorry for your sadness at having to leave. I understand you having left for the sake of your children. But it should be obvious, with the support numbers increasing for FF and it becoming more obvious by the day that FG and Lab are not one jot different, that this place will never change. We deserve everything we get, for not only putting up with these crooks, but providing them with the lifestyle to which they feel so rightfully entitled.
      I would council you not to hold on to any teary eyed notion of this place and coming back here. Don’t! You will be doing your children a major disservice by coming back to this godforsaken sh*thole. I wish I had the option of getting out.
      It is interesting that your post garnered 12 (at the time of writing this) “Dislikes”. I rest my case!

      Reply
  • and yesterday enda tells us we’re recovering and its all his doing ………well done lads more spoof from ye

    Reply
  • New laws coming in now Derek. No more cyber bullying Enda. RTE news only. censorship all d way

    Reply
  • Steve 07/03/13 #

    If you work in any manufacturing centre in ireland, your days are numbered. Ireland is too expensive to have manufacturing plants in. It makes total economic sense for them to move Operations out.

    Reply
    • Steve, many decisions to close manufacturing facilities large and small are based on labour cost. However, if these so called experts knew enough about manufacturing and how it related to the overall business, labour cost is usually a very small % of the cost of ANY product.

      Manufacturing companies employing lean business methods to their operations are thriving, even in “high-cost” countries including Ireland (also US, Germany, Japan etc). This is true of operations as diverse as agricultural machinery, furniture, sound systems, cars and indeed pharma. Too many companies are stil focused on the unit cost of the product, instead of the total cost of running a facility.

      In this case, while the decision is a difficult one to accept, I think the company must be given some credit that the decision has been made and announced so early. With multi-nattionals, their scale allows them to move locations quickly and it may very well be a strategic move. Singapore isn’t the lowest cost country in the world but it is physically closer to emerging markets that the company may be targeting.

      In any case, this is a difficult day for all concerned and hopefully the staff will be able to secure employment elsewhere between now and the end of next year.

      Reply
    • “Ireland is too expensive to have manufacturing plants in”

      Depends on what you are manufacturing really. They are moving some production to Tipperary. And some to Singapore – which is hardly a low cost option for manufacturing.

      And Ireland and Germany were the only two euro zone countries not to report a fall in manufacturing activity last month.
      http://www.irishtimes.com/newspaper/finance/2013/0302/1224330697004.html

      Reply
    • Msd since 2007 have went from one site in Ireland to 8 I think, and invested heavily in existing sites, manufacturing is far from over in Ireland, but it is changing and becoming more lean and efficient! People’s resistance to these changes could force high end manufacturing out of this country but not the cost of manufacturing itself!

      Reply
  • What are the government meant to do? Artificially lower the cost of doing business, (which is probably illegal in the EU)? Bail out businesses who are against the wall? That has worked great for us since 2008.

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  • 280 people, which doesn’t include contract workers, cleaners and kitchen staff, a lot of damage done to families and local shops will suffer too, some couples also working there, unimaginable damage!

    Reply
  • Ryan'O 07/03/13 #

    This is what the current inept government call recovery.

    Business’ closing every day.

    Yeah on the road to recovery alright…

    Reply
    • Ryan
      All over the World the Pharma manufacturers are strategically reassessing their production facilities because it costs billions every year in maintaining quality standards nevermind complying with Regulatory requirements. Additionally product portfolios change over time due to patent expiry and suddenly a plant has to close.
      Your posting blames this on Government and indeed all of your postings are totally anti Government.
      As this case illustrates you clearly don’t know what you’re talking about so in the interests of the employees this morning and Ireland’s need to attract more industry of this type it might be better for you to remain silent.

      Reply
  • Another multi national jumps ship. Did their grants expire then? Where’s Enda Kenny and Richard Bruton? I mean they are quick to turn up when as little as 15 new jobs are being created by the IDA giving money to foreign companies. Why not be there when they’ve bled every cent they can get, then scarper off with the huge profits, leaving a huge bill in statutory redundancy payments that shall be picked up by the taxpayer..

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    • The plant was Schering Plough who merged with Merck and unfortunately the new company does not need this plant anymore. A very, very bad day for Rathdrum and Wicklow

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    • I had an interview there recently, good pay and conditions, thank God I didn’t get it.

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    • Rodrigo
      Don’t continue to publicly expose your ignorance. This plant is very old and the reinvestment necessary to bring it up to GMP standards is far in excess of the returns that could be made even if the Company had products to manufacture. Remember many of these Companies have products reaching the end of their patent life and that immediately collapses demand for manufacturing. Grants have nothing to do with this high end Industry. They don’t invest in Ireland for Grants and they don’t close factories because of their absence.

      Reply
  • Adam 07/03/13 #

    280 hard working people to be without a job through no fault of their own
    280 less people paying PRSI & income tax
    280 more people on the dole

    Welcome to the Republic of lolreland

    Reply
  • ColindeB 07/03/13 #

    With our wages being higher than all of our trading partners, this sort of bad news is going to continue.

    On the other hand, it’s an old site and they’ve been offering voluntary redundancies for years. Hopefully some of them will be able to transfer to the Carlow plant.

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  • all these multinationals haven’t hired a single fulltime operator in years. they all using recruitment agencys that abuse ppl, paying them shit , with no benefits… scandalous .

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  • I see the Trolls are out in force on this thread!

    Reply

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