The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacturing Of Furniture And Other Manufacturing Other Manufacturing 32 - Other manufacturing
New offshoring locations
Costa Rica
360 jobs Number of planned job losses
Announcement Date
30 January 2008
Employment effect (start)
1 December 2008
Foreseen end date
31 January 2010
Description
US-owned Allergan has announced that it is to cut 360 jobs with the closure of its manufacturing plant in Arklow, County Wicklow, which produces silicone breast implants for the global market. The plant will be closed on a phased basis over the next two years. It said that it is to consolidate the manufacturing of its breast implant products at a new facility in Costa Rica, where costs are significantly lower.
The general manager of the Allergan plant, Paul Moody, said the decision to close the facility had been taken by the board of the company in the United States for economic and operational reasons. A comprehensive review undertaken by the company had found that significant investment would be needed in the Arklow facility, he said. This, in addition to relatively higher labour and energy costs and the savings generated from streamlining manufacturing in one plant, had made it inevitable that the company would seek to concentrate on its facility in Costa Rica, he added.
Allergan's executive vice-president for global technical operations, Raymond Diradoorian, said that the plant in Costa Rica, which was built in 2006, had the capacity to meet current and future production needs to the highest quality specifications.
The company was to engage in negotiations with the Siptu trade union and staff representatives on the phased closure of the facility and on the redundancy packages to be provided. Furthermore, state employment and training agencies, Enterprise Ireland and FAS, are to assist workers in finding replacement jobs and/or training.
Sources
31 January 2008: The Irish Times
Citation
Eurofound (2008), Allergan, Offshoring/Delocalisation in Ireland, factsheet number 66261, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/66261.
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