133 to lose jobs at medical device production plant

A TOTAL of 133 people will lose their jobs because of the closure of a coronary stent factory in Cashel, Co Tipperary, a decision owners Johnson & Johnson blamed on “evolving market dynamics”.

News of the shut-down was delivered to shocked staff in the manufacturing base at a lunchtime meeting yesterday and comes less than five years after plans for the plant’s opening were first trumpeted by then enterprise minister Micheál Martin.

Johnson & Johnson is closing its Cordis Corporation for “strategic business reasons”, it said in a statement yesterday.

IDA Ireland, which grant-aided the plant when it was being established in 2006 and 2007, has described the closure as “regrettable” and said the performance and productivity of the Cashel staff was considered “exemplary” during the operation’s short history.

The IDA would not confirm how much it invested in the Cordis plant.

The total cost of the 180,000sq ft plant was reported at €100 million when plans were announced in 2006 and it was initially envisaged that 450 people would eventually be employed, but that ambition never came to fruition.

Asked if the multinational will have to repay some of that grant-aid, Mr McEvoy said: “That’s a matter which both parties would be aware of and in discussions on.”

Efforts will be made to have some of the staff re-allocated to other Johnson & Johnson sites in the country, he said.

It’s understood the workers were not unionised but there is a statutory requirement on the company to engage with staff in relation to the closure.

Johnson & Johnson said it is no longer developing its NEVO Sirolimus-Eluting coronary stent as a result of “evolving market dynamics and product portfolio decisions”, and will stop the manufacture of this by the end of this year. A factory in Puerto Rico will also close because of the move.

“As a consequence of this decision, the company intends to close the Cashel manufacturing site, which may result in the regrettable loss of 133 permanent positions,” Johnson & Johnson said.

Consultations regarding the job losses will begin with the employees “immediately”, the company said, with general manager David Kinahan describing yesterday as “a very difficult day” for all involved.

“However, I want to stress that the intended closure of the Cordis business unit in Cashel is not a reflection on the dedication and hard work of everyone here at Cashel,” he said.

Local independent councillor Tom Wood called on all parties involved to explore alternative employment for the workers.