There's very bad news on the jobs front for Cork this morning as one of the leading pharma companies on Leeside has confirmed it is to close a plant that has been operating for over 40 years.
Viatris has earmarked its manufacturing facility on Little Island for closure as part of a major restructuring plan. However, there is some relief for employees as the closure will be gradual and not due to be completed until 2028.
The majority of the workforce will be retained until 2027/2028 and the company will seek to gradually wind-down operations - compulsory redundancies are not expected until the summer of 2028 and it will cease operations at the end of that year.
A company spokesperson told CorkBeo the decision was made: "After a thorough assessment of the site, which unfortunately concluded it was no longer viable due to challenging market and site dynamics. In particular, declining demand has resulted in underutilization of our production capacities at this particular site.
Vitaris has been one of the flagship employers in Cork's huge pharma sector and the closure will cause concerns for the wider life-sciences sector in Munster as global markets change. The company said it had to take the decision as the plant was in need of investment, which was not viable due to "challenging market dynamics".
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The plant opened in 1978 and has survived through a series of mergers and acquisitions - it is believed the company has decided it would cost too much to further update plant and processes there.
"Declining demand has resulted in underutilization of our production capacities," the company said in a statement after staff were informed of the decision at a meeting at the Little Island plant this morning.
The company has also said that the Cork plant could be sold on to another player in the pharma sector but added that; "In the meantime, Viatris remains committed to treating those impacted fairly and with respect".
"The company will be working with the unions and any other employee representatives on a plan for the reduction of staff, including comprehensive redundancy packages, likely including pay and healthcare continuation, career counselling services, and continued coverage under the Employee Assistance Program, subject to consultation with the unions and possibly other employee representatives," added the statement.
Vitaris is a major employer in Ireland with over 1,600 staff across Cork, Dublin and other sites. It has its corporate office in North Dublin and 400 people working at its R&D operation in Galway.
Currently, Viatris employs around 1,600 people across Ireland and the company said that following the Cork closure it will still maintain a significant presence in Ireland. In 2020, Viatris announced the closure of a plant at Baldoyle in North Co Dublin with the loss of 440 jobs.
