SIFA has been in Shannon since 1977 and has to date invested €70 million in the plant where it employs 265 people.

A little-known EU directive has thrown doubt on plans to develop a €150 million e-business park in Shannon which is expected to create 3,000 jobs over 10 years.

The directive, known as the Seveso directive, has been cited by a Shannon-based pharmaceutical company, which has lodged an appeal to An Bord Pleanála against Clare Co Council's decision to grant planning permission for the Westpark e-business park.

The Westpark proposal, being developed by Concre Developments, would form a significant extension to the Shannon Free Zone and comprise seven five-storey buildings on a 37-acre site.

In its decision, the council said the innovative landmark proposal was a significant investment in Shannon's economic future as a high-tech location.

However, in its appeal, SIFA - which has its Shannon facility located adjacent to the proposed Westpark site - has cited the EU Seveso directive as the main reason why the business park should not proceed.

In an effort to minimise safety risks around facilities dealing with hazardous substances, the Seveso directive specifies certain controls for land use in the vicinity of existing industrial sites.

Already this year, Roche Ireland prevented a residential housing development adjacent to its Clarecastle plant in Co Clare from proceeding by citing the directive.

In its decision, the appeals board stated that the proposal would militate against the long-term potential for future physical expansion of Roche.

Citing the Roche precedent, SIFA claims that the consequences of upholding the council's decision to grant permission for the Concre proposal "would represent an unreasonable, unfair and entirely avoidable burden on an important and long-established undertaking that is a major source of local employment".

With plans for a major expansion, SIFA states that based on the plant's future risk profile under the Seveso directive, "it is apparent that a significant portion of the proposed development by Concre Development will lie within zone one high-risk profiles".

Pointing out that the Health and Safety Authority (HSA) land use planning criteria advises against office developments, SIFA claims the proposal will lead to a restriction on the long-term potential for the future expansion of its facility and is contrary to the extent and provisions of the directive.

Concre Development director general Mr Bobby Nugent declined to comment on the appeal, stating that the company still had to study the document.