30/01/2008

Minister Promises Support Over Jobs Lost To Costa Rica

Every support will be given to employees at a pharmaceutical company in Co Wicklow that is closing its plant in Arklow and moving operations to Costa Rica.

More than 350 people are set to lose their jobs at Allergan - a breast implant products company - as a result.

Enterprise Minister Micheal Martin has promised that the IDA will work to attract new investment to the region.

He said the workers at the plant were now "a top priority for the government and its job creation and training agencies".

According to a statement from the company, the decision was made on cost grounds with wages and corporation taxes being significantly lower in Costa Rica.

The company said the restructuring and transition would cost between $60 to $65 million.

Raymond Diradoorian, Executive Vice President with 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."

He said the Costa Rica plant could meet current and future production demands and added that the Arklow would require a very high level of investment to maintain competitiveness.

Mr Diradoorian said the company remains "strongly committed" to its other Irish operations where it employs over 750 people at its pharmaceutical plant in Westport, Co Mayo and 70 people at its European services Centre in Dublin.

Talks are now due to begin with the main union at the plant Siptu.

Most of the workforce in the plant are in the 25 to 45-year-old age group and a spokesman said most had a high level of education.

(VB)

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