Two firms to create 370 jobs

THE economy received a major boost yesterday with news that more than 370 jobs are being created by two international companies in Galway and Cork.

A €70 million factory is planned in a start-up company by German drugs group Altana, which will give work to 150 people at Carrigtwohill, Co Cork.

Expansion at the US-owned Cigna medical claims processing centre in Loughrea, Co Galway, is to provide 220 jobs over the next three years. More than 100 people are already employed at the Cigna processing centre, which began operations 13 years ago. IDA Ireland said the two announcements confirmed Ireland's continuing ability to attract major overseas investment at a time of international uncertainty. The IDA sees the multinational pharmaceutical sector, which is predominantly based in the Cork area, as one of a small number of sectors which it expects will create thousands of jobs during 2003.

The Cork plant will be Altana's first venture in the Republic and the group is in the final stages of negotiations with IDA Ireland to build a factory on a greenfield site. It will manufacture tablets used for asthma and respiratory diseases. Senator John Minihan of the Progressive Democrats described the Altana announcement as a very welcome boost for East Cork, which had been hard-hit by the recent closures of Ispat, Youghal Carpets, Artesyn Technologies and Technicolour.

He said Altana's decision to locate in Carrigtwohill was proof of the continued success of the pharmaceutical sector in Cork which had continued to do well, despite the global downturn.

Announcing Cigna's expansion, Tánaiste Mary Harney said it would offer a wide range of quality employment opportunities to the people of Co Galway. She said it further secured the existing jobs at the Loughrea facility and ensured the continued success of the operation. Ms Harney said the company would be offering a wide range of quality jobs to school leavers and college graduates. The additional capacity was needed to process customer claims from the US for which the Loughrea operation has responsibility.

A company spokesperson said Cigna's decision to expand was based on the high quality of the work being done in Loughrea since 1990.

Due to the urgent need for extra capacity, recruitment is already underway and 50 of the new positions have already been filled. Loughrea Chamber of Commerce president Maura Winters , said 220 new jobs were of enormous significance to a town with a population of 3,500. They would be worth more than 8 million a year in spending power to the area.

Cigna Benefits Processing Ltd of Loughrea is part of Cigna Corporation, which employs 40,000 people at more than 450 locations worldwide. It is the third-largest investor-owned employee benefits organisation in the US. Cigna HealthCare a subsidiary of Cigna Corporation which is responsible for the Loughrea operation, employs 30,000 people and provides a broad range of group medical, dental, behavioural and pharmacy benefits with coverage in all 50 US states and in Puerto Rico.