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LAST UPDATE | 29 Aug 2024
MEDICAL MANUFACTURING COMPANY Cardinal Health has told staff at its Co Offaly plant that it will close by March 2026, with over 300 workers set to be made redundant.
Staff at the Tullamore site were sent home at around 3pm yesterday and were asked to meet with management at 10am this morning, when they were informed of the decision.
The first phase of the closure, which will impact 315 full-time employees, will begin in six weeks when the first redundancies take affect.
Cardinal Health is a distributor of pharmaceuticals and a global manufacturer and distributor of medical and laboratory products. It is headquartered in Ohio.
The closure will see one of the company’s product lines being discontinued, while the remaining two will be relocated to Mexico and Costa Rica.
In a statement to The Journal, Cardinal Health said: “We plan to consolidate production from our Tullamore facility to other facilities within our self-manufacturing network in March of 2026. Commercial activities in Ireland will not be impacted by these plans.
“This decision is part of our regular assessment of our global business, manufacturing and supply chain operations to ensure we are able to meet the evolving needs of our customers, the industry and our business.”
The Journal understands staff have been offered a full redundancy package of six weeks pay, plus the statutory two weeks.
Speaking to The Journal following the announcement of the closure, Fianna Fáil councillor Tony McCormack said it was “a sad day for Tullamore”.
“This company has been there for over 40 years. When it started out, Ireland would have been in a recession, so they were sought-after jobs,” McCormack said.
A lot of people working there have been there since then. I’ve been talking to people this morning with 24 years and 30 years of service to this company.
“We’ve a great community here in Offaly, and we always stick together. In fact, I had a company onto me this morning who have nine jobs available and were asking me to pass the information on to those employees that contacted me.”
McCormack said that while this is not the news the employees wanted to hear this morning, those he has spoken to are “happy” with the redundancy package that has been offered.
He earlier told The Journal that he had spoken to Tánaiste Micheál Martin and Minister for Enterprise, Trade and Employment Peter Burke about the matter.
“The Tánaiste said that any government agencies that are needed to help these people will be there, either for upskilling or anything else those employees need, will be there to help them to transition to new employment.”
The plant is across the road from sterilisation company Steris, with McCormack suggesting it would be an ideal place for a medical device company to locate with sterilisation equipment already present.
He said he would work with Ireland’s Foreign Direct Investment Agency (IDA) “to make sure that we have somebody to move into that plant as soon as possible after it shuts down in 2026″.
In a statement this afternoon, Enterprise Minister Peter Burke said he has been engaging with the company.
“My primary concern is for the staff and their families who are now coming to terms with the impact of this announcement,” he said.
“Following this morning’s Town Hall meeting with staff, and along with the IDA and my Department we will work with the company management and with staff on current and potential future possibilities.
We will make every effort to identify alternative employment opportunities for the staff affected by this announcement.
“As a country we are at full employment, with strong demand for medtech and life sciences skills and we will work to help employees impacted to find alternative employment.”
Burke also pointed out that Ireland has “a strong cohort of indigenous firms in the medtech sector” which Enterprise Ireland is working with to further develop and expand, including attracting experienced staff in the sector.
He said the Local Enterprise Offices will provide advice and training for any employees in the sector who have ambitions to start their own business.
Fianna Fáil MEP Barry Cowen said the closure is a significant blow to the local economy.
“The closure of Cardinal’s plant will have a profound impact on our local workforce, many of whom have dedicated years of service to the company,” Cowen said.
“My immediate focus is on the employees and their families who are directly affected by this decision. I have been assured that an adequate redundancy package will be put in place to recognise their commitment and contribution over the years.”
Cowen also said he had stressed to Minister Burke and the Minister of State for Trade Promotion Dara Calleary “the need to immediately focus on attracting replacement industry to our area”.
“It is imperative that we act swiftly to mitigate the impact of this closure on our region,” he said, adding he had asked Burke and Calleary to meet with councillors, the Chamber of Commerce and other stakeholders “as soon as possible”.
Fine Gael TD for Laois-Offaly Charlie Flanagan said it was a “black day for Tullamore”.
“My thoughts and solidarity are with the over 300 Cardinal Health workers and their families at this difficult time,” he said.
“I have spoken to some workers and pledged my active assistance. Relevant state agencies are on hand to provide advice and help.
“Much can happen between now and next March to soften the blow, although it is a huge setback to economic and social life of Tullamore.”
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A big blow for the region. Unfortunately we are in uncharted waters economically. The cost of manufacturing and production here is just not sustainable for some companies. I hope all those affected secure new employment soon.
@Andrew Kenny: Absolutely, there has been very little to no efforts by the EU or the Irish government to reign in costs and inflation.
The EU’s Marginal Pricing Policy is one glaring example where electricity prices are sky-high regardless of how much renewables are feeding into the grid.
Not one of the candidates brought this destructive policy when campaigning for their seat, and not one media pundit asked them about it either.
@Laois Weather: Correct. Easier for the government to go with the ‘spin and optics’ option by giving energy credits. Big deal. The big energy companies left unscathed, zero action of any description to reel them in. Same in every other sector. A lot of the electorate are fools as they don’t see the real picture. They literally buy what the government are selling and will happily vote the same way again. They won’t even consider alternative options. We get what we vote for!
@Andrew Kenny: I agree, but please offer alternatives. SF?
@If you’re: If enough people voted outright for independents. Enough 1st preference votes that means they hold a majority, appoint a strong independent Taoiseach backed up by a smaller FG or FF depending on the numbers. SF? No. I honestly think it is the only alternative that might just bring about some change.
We have every minister now who is an expert on Palestine, Ukraine and every other corner of the globe,but no one looking after their own back yard. Cardinal Health say their commercial activities will not be impacted. Would this have to do with corportation tax rate of 12.5%.
A terrible blow to Tullamore………… Was hoping the news wouldn’t be this devastating.
Best of luck to all those affected, hoping everyone finds other employment.
Ultimately, I guess the finger if blame can be pointed at “globalization”…….. But that’s for another day, today is all about absorbing the awful news
@Buster Lawless: except they wouldn’t have been in Ireland in the first place without globalisation. There is no blame, just a commercial decision
@Buster Lawless: Hey Ken, not sure if you do irony or not but your Daddy Trump plans on taking all these Pharma jobs back to the USA or load them with fines. So keep your faux sympathy and jump into your juggernaut and F off
@Freda Peeple: classy as always, lol, & thanks for the ‘ken’ bit, much prefer that one to ‘ Maurice ‘ or ‘ William ‘
@Freda Peeple: Creepy Joe is recalling all the jobs
Trump isn’t back yet…
@Paul: what jobs did Biden recall?
@Paul: It’s republican policy you cabbage, so no, Joe didn’t recall any jobs, whatever that means. Creepy Don is the one with the SA charges against him isn’t he?
@Paul: Read the article again. No jobs are being recalled to USA. 2 product lines are being discontinued and the other relocated to Costa Rica and Mexico (Not USA just yet). The 300 odd staff will get a decent payout if they have long service (almost €200k based on 40 years service and capped at €600 per week) but if your service is not so long there are 100s of jobs in pharma in Athlone or Galway.
Worst nightmare friends relationships built up in a local community not the employees fault its the cost of business. Local authorities or government never think of reducing costs they just increase rates taxes etc.when was the last time if ever you saw a redundancy or staff reduction in local government its an out of control growth industry
@Stephen Byrne: What taxes would shut down this plant?
@Paul O’Mahoney: Carbon taxes, EU marginal pricing policy, increased Employer PRSI contributions, wage inflation fed in by ever increasing stealth taxes on employees (who in turn demand better pay). We could go on and on all day here.
@Laois Weather: All those costs are tax deductible and have been forever, this is a commercial decision for a company whose global turnover is €200bn plus, per annum they are moving towards AI assisted manufacturing in the US and Asia unfortunately it probably couldn’t be done in that plant for reasons we’ll probably never know.
It’s a very unfortunate situation for those employees but it’s one that we need to get ready for as more will probably follow.
@Laois Weather: Employers PRSI has increased by 0.4% in the last 20 years. Businesses are not paying carbon taxes. Rates have been steady since COVID (in fact we all got some relief from rates whether we needed it or not). Employee taxes have reduced every year since we exited the IMF budgetary restrictions as the tax credits and cut off point have been increasing. Employee wages have only been increasing as the minimum wage and cost of living has increased. You can only go on all day if you are making statements that are not true
@Paul O’Mahoney: A cost being tax deductable doesn’t all of a sudden stop it from being a cost. Every cost associated with your business is tax deductable. You should still try to reduce those costs as it is better to pay taxes on profits rather than have smaller or no profits at all
@Paul O’Mahoney: Ireland has priced itself out of existence.
Government policies of interference in how private businesses are managed
Sick pay
Holiday pay
Pensions
Domestic abuse pay on way
Carbon tax
Corporation tax
Rates
Vat
PRSI
Unaffordable insurance costs
Claims and litigation culture
I could continue for ever.
Zero housing availability
Poor Health facilities
Zero public transport
Attack on car owners, with zero alternatives provided.
Attack on heating homes with zero alternatives offered.
Then we have mandatory working from the Beach policy inflicted on businesses.
It’s almost impossible to run a business if most of your employees are scattered across the beaches of Ireland and Spain.
They have rendered office accommodation for businesses unnecessary any more.
We are rearing snowflakes that don’t want to work but expect absolutely everything handed to them. Including free houses.
Meanwhile businesses are paying Emloyers PRSI now for absolutely no benefit to the business.
Businesses are constantly reviewing their operations. It’s simply cheaper to operate in low cost economies. We are no longer that.
We either create and support our own indigenous industries or go backwards.
This and the Pharmaceutical plant in Little Island in Cork are only the beginning of an exodus out of this cost crippling economy.
We have killed the FDI Golden Goose through Government interference.
Ireland is getting too expensive, despite government supports, to do business in!
The workers happy because they live in houses that have soared in value the last 3 years so they think they will be fine with a few quid from the company. Anything happens to those paper house valuations and all of a sudden this intangible wealth dissipates and people wake up to see that things are in the toilet. Some of us can see already that things are in the toilet; cars and phones are financed, housing mortgaged, salaries are barely enabling savings each month and people are comfortable using credit cards and taking on debt for financings (eg Klarna). How many people can easily live for the next 6 months if they had no income tomorrow?
We had something similar accross the road from it when Sennheiser decided to relocate operations to Romania. Sonovo took over that plant and it’s doing quite well. No idea how the headcount was impacted there.
Go chase Google to build their new Data centre down their, apparently Dublin can not supply electricity for it
@ken bramley: data centres don’t provide jobs once they’re built
Minister engaging with the company…. They don’t give a toss!!!
Paul.compared to where there moving every tax you could name rates waste collection electricity food .we’re out of control here otherwise why move
@Stephen Byrne: My guess the plant probably isn’t suitable for the ” next phase ” or something like that.
Hopefully they get the 6 wks per Yr redundancy and a well paid job with replacement company into same site. Would turn a bust into a boom for local economy. State agencies need to do whatever needed to get a replacement employer.
@Mr “JonnieBoy” Johnson: That six weeks pay wouldn’t stretch for very long. Might be a week or two of it before the newly unemployed adjust to much lower incomes.
@Laois Weather: its 6 wks salary per year of service plus statutory ya donut. Could be worth a tidy sum if you had a good salary and 10yrs service. Add top slicing.
Ireland has priced itself out of existence.
Government policies of interference in how private businesses are managed
Sick pay
Holiday pay
Pensions
Domestic abuse pay on way
Carbon tax
Corporation tax
Rates
Vat
PRSI
Unaffordable insurance costs
Claims and litigation culture
I could continue for ever.
Zero housing availability
Poor Health facilities
Zero public transport
Attack on car owners, with zero alternatives provided.
Attack on heating homes with zero alternatives offered.
Then we have mandatory working from the Beach policy inflicted on businesses.
It’s almost impossible to run a business if most of your employees are scattered across the beaches of Ireland and Spain.
They have rendered office accommodation for businesses unnecessary any more.
We are rearing snowflakes that don’t want to work but expect absolutely everything handed to them. Including free houses.
Meanwhile businesses are paying Emloyers PRSI now for absolutely no benefit to the business.
Businesses are constantly reviewing their operations. It’s simply cheaper to operate in low cost economies. We are no longer that.
We either create and support our own indigenous industries or go backwards.
This and the Pharmaceutical plant in Little Island in Cork are only the beginning of an exodus out of this cost crippling economy.
We have killed the FDI Golden Goose through Government interference.
8 weeks pay I hope per year of service … otherwise a joke
It looks like they had profit no losses on that factory. It’s pure cost optimisation exercise for the greedy management to show some income growth for the shareholders. And they just got 100m payout last year from this factory. All world is becoming more protectionist including USA. EU needs to become more protectionist itself. No sales in the block if you have no factory in EU should became the norm. Anty trust proceedings should become a norm as well. This is the reason for the price gauging by the global companies.
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