BOSTON SCIENTIFIC has announced the closure of its Tullamore plant with the loss of 240 jobs. The company said the closure followed the acquisition last February of its fluid management business by US private equity group Avista Capital Partners in a $425 million cash deal.
The Tullamore plant was part of the fluid management business, which makes devices for use in angiography and angioplasty procedures.
Avista had continued to source product from Tullamore but, according to a statement yesterday from Boston Scientific, it has now chosen to transfer all production to US facilities.
As a result, Boston Scientific will close the Tullamore operation next year. It said yesterday that it would now enter discussions with employees.
Boston Scientific, which also manufactures cardiovascular products at the Offaly plant, said it would transfer this part of the business to its Cork unit.
A spokesman for the company said it had spare capacity in Cork but that the transfer would create some employment opportunities for Tullamore staff.
Taoiseach Brian Cowen said yesterday that he regretted the loss of the Tullamore business. "Boston Scientific has given excellent employment in Tullamore for many years and, while today's commercial decision is a blow for the midlands, I am confident that given the highly skilled and motivated workforce in Tullamore, we will see new investment attracted to the region," the Taoiseach said.
"I can assure people that the Government and its agencies, including the IDA and Enterprise Ireland, are already working to attract such an investment."
Laois/Offaly Fine Gael TD Charlie Flanagan described the news as an "economic and psychological blow to Tullamore and the midlands region".
"The apparent domino effect of businesses closing in the midlands area is staggering, and is compounded by the comparatively high unemployment figures."
The Tullamore operation opened first in 1994 as Namic (North American Medical Instruments Corp), which made catheters. Shortly after the Irish plant opened, Namic was acquired by Pfizer. In 1998, Boston Scientific acquired the Namic business from Pfizer as part of a $2.1 billion deal.
Boston Scientific is understood to have booked a $120 million profit after tax on the sale of the business to Avista. Boston Scientific, which has suffered a number of setbacks in its main business of producing drug-eluting stents, first announced plans to sell the unit last August as part of a drive to simplify the business.
Boston Scientific employs more than 5,000 people in Ireland.
The company said yesterday that it remained strongly committed to Ireland and its operations here.
