More than 170 jobs lost at Shannon Free Zone but signs point to growth
The zone is home to more than 100 companies which employ more than 7,700 people and generate almost €3bn in sales a year, over 90% of which are to export markets.
The regional development agency said 406 jobs were created in the zone last year, compared to 580 lost.
However, a spokeswoman said “jobs in indigenous companies at Shannon Free Zone continued to grow in 2011. Over the past two years, indigenous jobs at the free zone have increased by over 10% from 949 to 1,046.”
The development agency’s chief executive, Vincent Cunnane, said he was hoping that there would be a break-even result for the zone last year. “We had hoped that it would be flat and the early indications were that it would be.”
Mr Cunnane said the zone had not lost any of the bigger companies, and that 90% of the job losses were due to downsizing.
In 2011, Shannon Development approved financial supports to free zone companies which will leverage investments of €13m by these businesses. Twenty free zone companies received agency support packages across key areas such as R&D, training, and marketing.
Mr Cunnane recently said he had no indication that Chinese investment would come to the zone based on the agency’s relationship with China.
The agency said the zone companies contributed about €600m to the Irish and Shannon economies every year in terms of payroll, materials, and services.
It said a new broadband initiative for the zone would give the agency “a valuable marketing tool to strengthen its case for foreign direct investment. A new dark fibre optic cable will give businesses operating in the free zone and Smithstown business parks the opportunity to avail of enhanced high speed broadband services improving national and international connectivity.”
Work on the project is due for completion by the end of this month.
