US drug giant Amgen has pushed back by two years plans to build an €820 million manufacturing plant in Co Cork, a move that delays the recruitment of more than 1,000 staff until 2012.
While Amgen insisted that the project will go ahead, the development is a setback for efforts to provide alternative employment in the Cork region to workers made redundant in a spate of cuts at big multinational employers such as Motorola and Pfizer.
The postponement of the Amgen project comes less than 15 months after IDA Ireland beat off competition from Switzerland and Singapore to secure the investment from the Californian group, the world's biggest bio-pharmaceutical manufacturer.
At a time when many basic manufacturers are moving Irish based-operations to economies with cheaper cost bases, the Amgen project was seen as a coup for the Government in its effort to attract sophisticated industries into Ireland. Amgen had plans to employ 750 graduates by 2010, among them 120 with doctorates or Master's degrees.
But the group revealed yesterday that it had decided to "reschedule" execution of the project, which is to receive significant assistance from IDA Ireland. Amgen planned to open the plant at Carrigtwohill in 2009 and employ 1,100 there by 2010. It also held out the possibility of significant expansion in the Irish unit, noting last year that the plant would ultimately have the potential to employ 2,500 people.
However, an Amgen spokeswoman said yesterday that the plant would not go into production until 2012. She attributed the delay to a "global reassessment of business needs" but did not provide any further details about the reasons for the decision.
"The company is fully committed to going ahead. It's just a time change," she said.
Stating that the original schedule was "too aggressive", she said the new plant in Co Cork was no longer required "at the same pace" as envisaged last year.
Amgen continued to invest €75-€100 million in site preparations for the development at its 133-acre property in Carrigtwohill, she said. "This change is going to allow them to sequence it [ the development] in a more standardised manner."
The news was greeted with dismay in Co Cork.
Labour councillor John Mulvihill said the development was cause for concern following on numerous job losses in the region. "It's very disappointing to a lot of people in the east Cork region who were looking forward to the arrival of these 1,000 jobs - but now it's been postponed. I hope that it's not the thin end of the wedge before the general election."
Established in 1980 in Thousand Oaks, California, Amgen uses DNA and molecular biology technology to make drugs for the treatment of cancer, chronic kidney disease and other conditions.
The group had made preparations to recruit pharmacists, microbiologists and chemical and process engineers for the start of production at the Co Cork plant. Amgen said last year that it had a requirement for manufacturing capacity "closer" to the important European market.
In January 2006, Amgen said the ultimate value of the Irish initiative could well be greater than the €830 million it committed to the project.
Additional reporting by Olivia Kelleher
