250 jobs to go at Sligo medical firm

A medical company in Sligo is to wind down over the next four years with the loss of 250 jobs.

The 250 people employed at Stiefel Laboratories have been told that the company is proposing to cease operations by the end of 2013.

Stiefel has been in Sligo since 1975 and was taken over in July by GlaxoSmithKline.

It produces a range of prescription and over-the-counter products for the treatment of skin disorders, such as psoriasis and acne.

A statement issued by the company said that it is proposing to cease operations by the end of 2013 and that it regretted the potential impact of this in terms of job losses.

It added that this comes about as part of a global review of the Stiefel operation following this acquisition by Glaxosmithkline and is the result of under-utilised capacity.

Production will be transferred from Finisklin to the company's other facilities.

Tánaiste Mary Coughlan has expressed deep disappointment at the news but noted the 'long run-down' until 2013.

She said she would immediately engage with the IDA and other state agencies including Enterprise Ireland, FÁS and the local County Enterprise Board on behalf of the workers and she would do her utmost for the 250 employees affected.

Ms Coughlan said the IDA is in discussion with the parent company regarding potential opportunities to develop the site in Sligo.

GSK says it will now enter into consultation with the staff in Sligo and by March next year it should be clearer as to how the Sligo operation will be wound down.

North West MEP Marian Harkin has said that the news of the proposed closure of Stiefel in Sligo will demand an immediate and comprehensive response from Government and State agencies.

However, she said that in the longer term there is the possibility of applying to the European Globalisation Adjustment Fund in order to access funding for further training or setting up ones own business.

Ms Harkin said this fund was set up to help workers who lost their jobs due to the impact of globalisation and the current economic crisis - the money can be used for further training, job search initiatives or help while setting up their own business.

In order to qualify there must be at least 500 redundancies in a nine month period in a specific sector.

Meanwhile, Sligo Chamber of Commerce has said it is deeply disappointed by the news that the Stiefel Laboratories facility in Sligo will close. The Chamber said this will have a devastating effect on the employees and on the wider local community.

In a statement Hilary McPartland, Sligo Chamber expressed shock and sadness at the announcement saying 'this serves as a poignant reminder of the challenging environment we work in. It also highlights the importance of attracting new investment. Sligo has seen enormous growth over the past seven years, but this development needs to be supported by new businesses; entrepreneurs and industries investing in the region'.

Sligo Chamber President, Kevin Quinn Jnr. added that 'these are worrying times for Sligo and all parts of the country but we hope that the relevant political representatives and prominent figures in state agencies will focus on all parts of the country to include Sligo so that we are not disadvantaged in terms of FDI and investment in industry'.

He said that 'Growth in employment opportunities and job creation is a must for the region. Sligo Chamber, in line with its lobbying objectives, will be reinforcing the need for increased investment in employment creation and industry.'