Foreign firms yield 75% of exports

FOREIGN-OWNED multinational companies account for more than 75% of Ireland’s total annual exports, new figures show.

The latest annual list of the top 250 exporting companies in the country, compiled by the Irish Exporters’ Association (IEA), shows only three Irish companies in the first 10, in the form of Smurfit Packaging, and food companies Kerry Group and Aryzta. It underlines the key role of foreign direct investment in the economy, which has jumped by €2bn to €11.5bn in the past two years.

Smurfit Packaging is the highest ranked Irish-owned exporter on the list — in fourth position — with €6.5bn worth of exports. But, while there are only three Irish companies in the top 10, there are four homegrown agri-related companies in the top 20.

Overall, the top three Irish-based exporters are Johnson & Johnson, Microsoft and Google; with nearly €25bn worth of annual exports between them.

“The top 20 companies, accounting for 44% of total exports, is not unlike many other countries in terms of heavy dependence on a relatively small number of major multinational corporations,” according to IEA chief executive John Whelan.

He added the lowering of the cost base since the onset of the economic crisis, as well as changes in the business taxation system last year, have enhanced Ireland’s attractiveness as an investment location.

On a sectoral basis, seven of the current top 20 exporters represent the ICT (information and communications technology) sector, five are from the pharmaceutical/medical devices sector, and five represent the agri-food sector.