Roche confirms shock closure

More than 240 Roche employees have been left reeling following the shock closure of its small molecules manufacturing site in Clarecastle.

Roche, which is one of the biggest employers in Clare, today informed employees at its over of its intention to exit the site.
The closure has been described as a “black day for Clarecastle and Clare” by Clare Fine Gael Deputy Joe Carey in view of the hundreds of jobs that are directly and indirectly linked to the factory.

According to Deputy Carey, Roche has a three-year timeframe for the closure of the plant.

“Today is a very difficult day for everyone on site. Clarecastle has been a significant and successful manufacturing site since 1974 and the proposal for Roche to exit the site is in no way a reflection on the performance of the people or the site,” according to Gerry Cahill, Managing Director, Roche Ireland Limited.

“We will do our utmost to support our colleagues during this transition.”

Roche has informed the Minister for Jobs, Enterprise and Innovation, Richard Bruton and the IDA of the proposal to exit Clarecastle.

In a statement issued to the Clare Champion, the company confirmed it is committed to working with the minister and the IDA to seek a buyer for the site.

Roche will now enter into formal consultation with employees and their representatives. The company said it is committed to fully engaging with all employees and will provide all the necessary and appropriate support.

The planned exit results from a review of Roche’s worldwide manufacturing network for small molecules that highlighted current underutilisation as a result of the company’s evolving portfolio.

A new generation of specialised medicines based on small molecules requires novel manufacturing technologies and will be produced in lower volumes than traditional medicines.

As a result, Roche plans to close four manufacturing sites in Florence, South Carolina; Leganes, Spain; Segrate, Italy; and the Clarecastle site.

In order to minimise job reductions, the company is actively looking into divestment opportunities for these facilities.

Deputy Carey told the Clare Champion his thoughts were with the workers and their families during this difficult time of uncertainty. “I know a lot of the workers personally who are in shock over this decision. It is very raw. It is a black day for Clarecastle and Clare.

The Fine Gael Deputy said employees were informed about the closure by Mr Cahill during a meeting at 5 pm.

He said that was a corporate decision to close four plants in the United States of America, Spain, Italy and Clare.

Describing the closure as “devastating news for Clarecastle”, he recalled the company has gone through periods of uncertainty over the years.

He stressed the focus should now switch on securing an alternative investor for the Clarecastle site to try and secure as many jobs as possible.

Having discussed the closure with Minister Bruton this evening, Deputy Carey said both of them were committed to do everything possible with the help of the IDA and other stage agencies to secure an alternative investor.

He said a potential investor visited the Clarecastle site last week and expects the IDA will use its worldwide contacts in  offices through to market the plant as a very attractive investment.

Roche Ireland Limited is a subsidiary of the Roche Group, which has its headquarters in Basel, Switzerland. The Irish manufacturing facility was established in 1974 as Syntex Ireland on 36 hectares of land overlooking the Fergus River in Clarecastle, Co. Clare. In 1994 Syntex Ireland became part of the Pharmaceutical Division of the Roche Group when Roche acquired the Syntex Corporation.

Currently Roche Ireland employs approximately 240 people directly and a large number of sub contractors who rely on the work it provides on a regular basis.

Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics.

The company is is the world’s largest biotech company, with truly differentiated medicines in oncology, immunology, infectious diseases, ophthalmology and neuroscience. Roche is also the world leader in in vitro diagnostics and tissue-based cancer diagnostics, and a frontrunner in diabetes management.

Roche’s personalised healthcare strategy aims at providing medicines and diagnostics that enable tangible improvements in the health, quality of life and survival of patients. Founded in 1896, Roche has been making important contributions to global health for more than a century.

Twenty-eight medicines developed by Roche are included in the World Health Organization Model Lists of Essential Medicines, among them life-saving antibiotics, antimalarials and chemotherapy.

In 2014, the Roche Group employed 88,500 people worldwide, invested 8.9 billion Swiss francs in R&D and posted sales of 47.5 billion Swiss francs. Genentech, in the United States, is a wholly owned member of the Roche Group. Roche is the majority shareholder in Chugai Pharmaceutical, Japan.

Dan Danaher