23/08/2005

Hundreds of jobs to go at Donegal plant

Hundreds of jobs are to go at an American pharmaceutical delivery plant in Donegal, it has been confirmed.

Hospira, which manufactures medical devices, will axe 560 jobs as a result of the closure of its north-west base.

In a statement, the company said the decision was influenced by excess manufacturing capacity and the high cost of manufacturing in Ireland.

"To ensure long-term success, Hospira must focus on improving profitability through cost savings and increased operational efficiency," Donegal Plant Director Dermot Murphy said.

Minister for Enterprise, Trade & Employment Micheál Martin said the news would come as a devastating blow to the area.

“Our thoughts today are first and foremost with those who have lost their jobs and all efforts will now be concentrated on finding alternative employment for them," the Minister said.

"The full resources of the State's Development Agencies including IDA, Enterprise Ireland and FÁS are being mobilised in this regard. I understand from the company that this announcement does not affect their Sligo operation.

"Since I became Minister for Enterprise, Trade & Employment I have taken a particular interest in the economic development of Donegal and have visited the county on a number of occasions and will be doing so again.

"The Government is committed to advancing the economic infrastructure in Donegal to ensure the right environment exists for both inward investment and the development of the indigenous sector."

Hospira said the plant would shut in about 18 months' time with production moved to Costa Rica and the Dominican Republic.

(MB/SP)

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