Dáil Éireann debate -
Wednesday, 11 Dec 2002

Vol. 559 No. 2

Adjournment Debate. - Job Losses.

Mr. Hayes

I thank the Chair for allowing me raise the important issue of Ranbaxy Ireland Limited, Cashel, County Tipperary. I will give a brief history of Rambaxy. In 1966 the factory on the outskirts of Cashel traded as Rema Ireland. It ran into difficulties and, some time in 1966, Ranbaxy took over the company and invested in it. Since then it has enjoyed a good relationship with the local community. Some 100 people worked in the factory, some on a part-time basis. Since 1966 seasonal workers would be let go but were taken back after a short period.

Over recent weeks we have been led to believe that negotiations are taking place between the management and the union regarding 18 redundancies from among those working full time and the letting go of all part-time workers. This will be a significant blow to the economy of Cashel. It may seem a small number of jobs in the context of Dublin, Cork or Limerick but in a town such as Cashel which has only one factory, admittedly there is a new factory opening in the locality in the not too distant future, the loss of 18 full-time and 15 part-time jobs will be a devastating blow particularly to west Tipperary. People make pleas on behalf of the west, but west Tipperary contains the poorest town in Ireland, Tipperary town, which is close to Cashel and in the same region. West Tipperary is the context in which this matter must be viewed. As well as that, no town in south Tipperary was included as a hub or gateway town in the recently announced spatial strategy, and there are worries about decentralisation. Tonight, however, I am concerned about the future of Ranbaxy in the current climate. I expect the Minister will be able to help. I must point out the urgency of the situation: the number of jobs may seem small but because of the region with which we are dealing, I expect some help from the Minister.

Mr. M. Ahern

I thank the Deputy for raising this matter on the Adjournment. Ranbaxy Laboratories Limited was established in 1961 to manufacture pharmaceutical products. With headquarters in New Delhi, India, Ranbaxy's operations are divided into pharmaceutical, animal health care products, fine and synthesis chemicals and diagnostics. The company recorded sales of €475 million in 2001 with profits of €53 million. Ranbaxy is India's largest pharmaceuticals company, employing approximately 7,000 people worldwide.

In 1996, Ranbaxy Laboratories acquired Rima Pharmaceuticals Limited, a generic pharmaceuticals production facility in Cashel, County Tipperary. The company currently employs 83 permanent and 15 temporary people. Ninety-five per cent of its products are sold to the UK market, which is extremely price competitive. This has had a negative impact on the company's performance over the last six months and production volumes have declined. As a result, the company will move to a single shift operation from January 2003 and will therefore reduce manpower by way of redundancies. These redundancies will involve 18 permanent and 15 temporary staff.

The company has informed IDA Ireland that it is committed to maintaining a presence in Ireland and the IDA will maintain close contact with it. FÁS, the national training authority, will be in contact with company representatives tomorrow to discuss a detailed programme to assist those who are being made redundant in finding suitable alternative employment. FÁS will make available its full range of support services, including skills analysis, jobs placement, guidance and counselling interviews, identification of training needs and suitable training courses.

There have been some positive developments for south Tipperary. The ALZA Corporation is currently building a 60,000 sq. ft. facility in the IDA Cashel business park. Scheduled to open in the second half of 2003, the facility will manufacture patch technology products. Current employment is 22 but this is expected to grow to 100 employees at production stage. Total investment in the project is expected to be €162 million. South Tipperary has a good range of foreign direct investment companies in the growing pharmaceutical and health care sectors. Companies such as Guidant, Merck Sharp & Dohme and Clonmel Healthcare in Clonmel and now the ALZA Corporation in Cashel provide a solid base of employment. These are complemented by other significant employers such as Pall Corporation in Tipperary town and SRAM Ireland in Carrick-on-Suir.

The main focus of IDA activity in the south east will be on Tipperary town, with the upgrading of the IDA business park. In addition, planning permission will be sought for an advance technology building, sponsored by the business expansion scheme, in the business park in Tipperary town. In terms of increasing Tipperary's attractiveness as a location for investment, the Tipperary Institute is currently operating two campuses, one in Clonmel with 300 students and the other in Thurles with 500 students. The Clonmel campus commenced courses in 2000 and is expecting the first graduate output in 2003. It is hoped to develop the institute's range of courses to take on more business and science students.

The State development agencies, under the aegis of the Department of Enterprise, Trade and Employment, are fully committed to the promotion of employment creation in south Tipperary, including Cashel. The agencies work closely with each other and with the development bodies in the area, as well as other local bodies and interests, in facilitating an integrated approach to enterprise development in south Tipperary.