Sanofi to close Irish site, blames EU drug pricing

Sanofi-Aventis plans to close its site in Waterford in southeastern Ireland by the end of 2007, blaming the EU drug market for the decision.

The closure will lead to 200 job losses.

In a statement Sanofi blamed at least part of the decision on EU drug-pricing policies. It said the Waterford site had been affected by the ongoing decline in European markets, which was partly due to increasing pressure from generics, and by drug price reduction policies in a number of European countries.

A group evaluation had concluded that Sanofi's other factories had excess capacity and could absorb the Waterford site's production, the company said.

John McLaughlin, managing director of Sanofi-Aventis in Ireland, said the country had the expertise required by pharma and, crucially, the Irish government had avoided penalising the industry in an attempt to control healthcare costs.

The Irish minister for enterprise, trade and employment Micheal Martin said that 'the statement by Sanofi-Aventis that it is considering closing its plant in Waterford is a major disappointment'.

He added that state job agencies would be helping workers to find alternative employment on an individual basis.

Alain Peychaud, vice-president for industrial affairs at Sanofi-Aventis said that the closure did not reflect the performance or commitment of the Waterford workforce. 'However, in order to remain competitive in the global pharmaceutical marketplace, we must continuously review our business strategies,' he argued.

The firm's Irish headquarters in Dublin, which has 140 employees, will not be affected by the closure.