Despite high labour costs, Ireland Inc is still an attractive proposition for multinationals seeking to expand and develop, writes Caroline Madden

It seems Ireland still has the X-factor when it comes to enticing multinationals to part with their hard-earned cash.

Earlier this week, US healthcare group Abbott announced that it is to plough a further €30 million into expanding its Clonmel operation, having just officially opened a new manufacturing facility there which cost an estimated €90 million.

Its Galway facility is also in line to undergo serious expansion.

Abbott now needs to add several hundred highly skilled employees to its Irish workforce, which already exceeds 3,300.

With doom-laden predictions regularly voiced these days that "Ireland Inc" is pricing itself out of the market, what keeps a huge multinational like Abbott coming back for more?

Pat Ryan, vice-president of manufacturing operations in Abbott's vascular division, fresh off the plane from Temecula, California for the unveiling of the new Clonmel facilities, shed a little light on the country's enduring attraction.

"There are a lot of places where the cost is high and I think the only real differentiation here in Ireland is perhaps we pay more for labour," he says.

"But we think we get value for money based on the quality of the employees that we bring in. The education system prepares everyone at every level within our organisation very well to do the type of high-tech manufacturing that we do here."

"We have a lot of investment here already," Ryan adds. "Engineers, chemists, manufacturing supervisors who know our methods and know our quality systems so it's easy to leverage what we have to facilitate the growth which we need to do very quickly. So, for us, it's a good investment and a very smart move."

Minister for Enterprise, Trade and Employment Micheál Martin, speaking at the Clonmel opening, said Abbott's investment here "further confirms our competitive position worldwide to sustain high-value manufacturing activities for leading global companies".

Abbott Vascular will use its Clonmel and Galway facilities to manufacture high-tech treatments for cardiovascular diseases, such as its new drug-eluting stent system. The stent, a tube which is inserted into a coronary artery to prop it open after it has been unblocked, and which also releases a controlled supply of medication, will be launched on the European market next month.

While drug-eluting stents are potentially life-saving devices, the results of a recent study linked the use of Boston Scientific's stent systems to the development of blood clots in a small number of patients.

So while Abbott's investment here will produce hundreds of high-end jobs, will they be based on a house of cards - a cutting-edge technology that could quickly be discredited?

Ryan insists that this is not the case, and that Abbott Vascular's new venture is not affected by the study.

"Boston Scientific has a different product than we do. It's still a drug-eluting stent, but they use a different drug, they have a different delivery system, they have a different metal stent," he says.

"We're confident of the safety and efficacy of our product and we think that it's going to be a strong player when we launch next month."

Ryan served 14 years in the US navy before entering the world of healthcare. "I was talked out of the navy and into Guidant," he says.

"I liked the type of work that they did, the ability to see every day that you've accomplished something. It was just an exciting place to be at the time. I joined when Guidant launched their multi-link stent, which was a huge success in the marketplace and so I was very attracted to manufacturing."

He was then offered the opportunity to relocate to Clonmel, and spent four years there, during which time he became managing director of Guidant Ireland.

Guidant's vascular business, including the Clonmel facility, was acquired by Abbott in April this year, and Ryan, although now based in California, is overseeing Abbott's vascular operations in Clonmel.

Abbott Vascular has already increased the headcount in Clonmel to approximately 850 employees, of whom 100 were recruited from foreign countries. The incremental €30 million investment will be used to develop an administration, manufacturing and warehouse facility, and Abbott will have to hire up to 600 new employees, Ryan estimates.

"We've been recruiting and really working hard to try and bring more people in with this expansion and we're going to continue that effort and probably drive even harder to get more people in over the next year-and-a-half."

The company is running a strong recruitment drive with open days and road shows, and will try to recruit from the local area first but may have to look overseas again to fill some positions.

"The Clonmel facility is a high-end, very technical manufacturing facility and we are really interested in hearing from people with that type of background that are interested in a good career in a strong company."

Similarly, the Galway expansion will create a number of high-tech job opportunities for engineers, supervisors and lab personnel, Ryan says.

"We are pleased to continue our legacy of commitment to Ireland and to the Clonmel and Galway communities," Ryan concludes.