The home that Jack built

Jack Stafford's association with pharmaceutical giant American Home Products Corporation is as long - if not longer - than the…

Jack Stafford's association with pharmaceutical giant American Home Products Corporation is as long - if not longer - than the company's association with Ireland. So, it should come as no surprise that the chairman of AHPC should have a more than useful knowledge of the company's history here.

AHPC's history in Ireland goes back 27 years to its first investment in 1974 - the setting up of Wyeth Nutritionals Ireland which is located in Askeaton, Co Limerick. The plant, which today employs 500 people, manufactures and distributes infant nutritional products.

"The first plant that we put here was an infant formula plant. Then, of course, Ireland was a good source of dairy products," he says.

Mr Stafford joined AHPC as general counsel from the legal staff of Hoffmann-La Roche in Nutley, New Jersey in 1970. In 1972, he was elected a vice-president and a senior vice-president in 1977. Moving from the legal side of the company into the business end was a big change and took some time to get used to, he says today.

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"As a general counsel, you're a little bit more outside the business. Once you get into the business side, your primary responsibility is taking account of all of the factors, sales and profits," he says.

Over the years Mr Stafford's responsibilities have increased. He became a director of the company in 1980 and president in 1981 before eventually becoming chairman and chief executive in 1986.

As Mr Stafford progressed through the ranks of AHPC, the company strengthened its links with Ireland. Fort Dodge Laboratories was established in Sligo in 1990 to manufacture and distribute animal healthcare products.

Wyeth Medica Ireland, located in Newbridge, Co Kildare, was set up in 1992 for the manufacture and distribution of pharmaceutical products. The plant currently employs more than 1,000 people.

One of the prime reasons for AHPC locating its infant formula plant in Askeaton in 1974 was that the company was not subject to local taxation because it was manufacturing for export only.

But Mr Stafford dismisses the notion that the company has chosen Ireland on the basis of a favourable tax regime alone.

"There are other places in the world where there are favourable tax rates but that is just one of many factors - proximity to your markets, and Ireland certainly serves that purpose, the availability of a good labour force and Ireland's good educational system produces that," he says, adding, "you must also have the support of both the local and national Government".

Co-operation with both Government and the IDA has been excellent, he says.

"Really, I don't think we've had any significant problems since we've been here. Since it's a relatively manageable size, we're not talking about 270 people and governments where it's hard to find out who to talk to. Here, we have a good working relationship with people in Government."

While conceding that he is unsure of the details and mechanics of the various partnership agreements over the years, Mr Stafford says they have added to Ireland's attractiveness.

"I know the end results," he says. "The end results are much better now than 30 years ago."

Much has been made of the fickleness of multinationals and their decisions to relocate when they find a country with a lower cost structure. But Mr Stafford also points to the decision last year by APHC's decision to locate a new biotechnology project at Grangecastle in Clondalkin as a sign of its commitment to this State.

Under Mr Stafford's stewardship, AHPC is investing $1 billion - the largest single investment in the State's history - in the new plant, creating 1,300 jobs at full production. The new campus, which will bring total AHPC employment in Ireland to more than 3,000, will manufacture a range of healthcare products for the treatment of patients suffering from serious illnesses including rheumatoid arthritis, pneumonia and spinal and facial injuries.

"It is not small by anybody's standards. It will probably be the largest facility of its kind in the world," says Mr Stafford.

Around 40 per cent of staff will have scientific backgrounds. Despite the tight labour market, he is confident that the company can recruit suitable staff.

"There is a shortage of well-trained technical people everywhere, not just in Ireland. But we offer attractive jobs and attractive benefits and compensation."

On May 1st, Mr Stafford relinquished the title and role of chief executive to Mr Robert Essner. But he will remain chairman of the company.

"I did it for 15 years. I'm 63 now and soon I'll be 64 and it's time to make a change," he says.

It should give him a little extra time to spend with his wife Inge, four daughters and eight grand-daughters and to indulge his love of golf, basketball and travel.