Pharmaceutical company Viatris has announced plans to wind down and close its manufacturing plant in Little Island in Cork, which employs around 200 people.
However the closure of the active pharmaceutical ingredient manufacturing facility will not happen until 2028, the company has said.
As a result, it said there will be no immediate reduction in staffing at the site and it is anticipated that the majority of the workforce will remain employed there over the intervening period.
It is expected that the company will begin to make staff redundant from the middle of June 2028, with the last workers leaving in December.
Viatris said the announcement comes after a thorough assessment of the site, which has been deemed to be no longer viable due to the "challenging market dynamics" and is in need of investment.
"Declining demand has resulted in underutilization of our production capacities," a spokesperson for the business said.
Staff working at the factory were told of the decision at a meeting this morning.
A consultation process about the proposal, which will involve workers and their representatives, will now get under way.
The company said the decision to phase out manufacturing at Little Island was not taken lightly and it will consider alternatives, including a potential sale of the site if a buyer can be found.
"In the meantime, Viatris remains committed to treating those impacted fairly and with respect," it said.
"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," it said.
It added that the announcement in no way reflects upon the company's "genuine appreciation for the commitment and work ethic of the people in and community of Little Island."
"Viatris is grateful for the dedication exhibited at this site and its remaining workforce in Ireland will continue to play an important role in the company’s future as it increases its focus on areas with the greatest potential to accelerate growth and patient impact," it said.
SIPTU, which represents some staff at the plant, said it had requested an urgent meeting with company management.
"This announcement is a shocking development for our members, many of whom have provided decades of loyal service to the company at this plant," said SIPTU Organiser, Ciara McMahon-Flavin.
"The announcement was unexpected and we are seeking an urgent meeting with the company to discuss all options to ensure the future of operations at this site."
"The plant has provided quality unionised jobs and their loss would be devastating to our members and their families. We are also calling for Government intervention in an attempt to save this plant and its jobs."
The union added that it will pursue all avenues to secure employment on the site going forward.
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.
The US business has a sterile injectables manufacturing facility and R&D centre in Galway employing around 400 people.
It also has a dry powder inhalers production plant in Dublin employing 300 staff, as well as an oral solid dosage factory in Damastown to the west of the capital, where 200 people work.
A further 300 people are employed at its corporate office in north Dublin.
In 2020, Viatris announced the closure of a plant in Baldoyle with the loss of 440 jobs.
A year later a further 70 roles were cut from its Irish corporate head office following a global restructuring of operations.
Viatris was formed in 2020 from a merger between Mylan and Upjohn, which was spun-out of Pfizer.
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Cathal McSweeney, Director of Public Affairs at Cork Chamber, said the job losses announced at Viatris present a challenging situation for all involved.
"It offers some help that no job will be lost until 2028, and in recent times, Cork has continued to experience significant business growth and investment in the pharma and life science sectors," Mr McSweeney said.
"The demand for skilled and talented employees remains high across the region, and we would be very optimistic that those affected will find new employment opportunities," he added.
Cathal McSweeney said the extensive pharma and life sciences ecosystem in Cork, encompassing R&D, education, and the business network, remains strong.
"In addition, the site occupied by Viatris in Little Island has a long history in serving the pharma industry and we would be confident that it offers great potential for future development," he said.
"Cork Chamber is dedicated to working closely with the entire sector to maintain its resilience and adaptability here in Cork, supporting ongoing employment and economic growth," he added.
