Medical devices firm to create 250 jobs in Shannon

The Shannon area is to get up to 250 new jobs over the next five years after US-headquartered Zimmer Holdings confirmed it would establish an Irish manufacturing base in the Shannon Free Zone.

The new plant, which will make Zimmer-branded knee and hip products, will have an investment of up to €50 million in the first two years. Zimmer is one of the world's leading suppliers of the design and development of reconstructive and spinal implants, trauma and other orthopaedic surgical products.

The jobs will be in management, quality, production, administration, logistics and maintenance, with about a third expected to require a third-level qualification. The investment was secured as a result of co-operation between IDA Ireland and Shannon Development.

The Republic's favourable tax regime, along with the skills and expertise of the workforce, were instrumental in Zimmer's decision. "The rationale for this expansion is to diversify our manufacturing network and reduce risk, take advantage of a lower tax jurisdiction and prepare our supply chain for additional future unit volumes," said Richard Stair, senior vice president of global operations and logistics at Zimmer Holdings.

"This will provide us greater flexibility in scaling our capacity for future demand and reversing the upward pressure on our effective tax rate over the long term."

Minister for Enterprise Micheál Martin said the decision would add to Ireland's profile as a top location for medical device companies in Europe. He described it as a "tremendous win" for Ireland and the Shannon region.

"The talent pool of both technical skills and key infrastructure which has resulted in previous investments by leading international medical device companies will be enhanced by the decision of Zimmer to locate in Shannon," he said.

The medical technology industry in the Republic employs 25,000 people in about 130 companies. The sector accounts for exports of almost €5.5 billion each year - about 8 per cent of Irish exports.