LAST UPDATE | 29 Aug 2024

MEDICAL MANUFACTURING COMPANY Cardinal Health has told staff at its Co Offaly plant that it will close by March 2026, with over 300 workers set to be made redundant.

Staff at the Tullamore site were sent home at around 3pm yesterday and were asked to meet with management at 10am this morning, when they were informed of the decision. 

The first phase of the closure, which will impact 315 full-time employees, will begin in six weeks when the first redundancies take affect. 

Cardinal Health is a distributor of pharmaceuticals and a global manufacturer and distributor of medical and laboratory products. It is headquartered in Ohio.

The closure will see one of the company’s product lines being discontinued, while the remaining two will be relocated to Mexico and Costa Rica.

In a statement to The Journal, Cardinal Health said: “We plan to consolidate production from our Tullamore facility to other facilities within our self-manufacturing network in March of 2026. Commercial activities in Ireland will not be impacted by these plans.

“This decision is part of our regular assessment of our global business, manufacturing and supply chain operations to ensure we are able to meet the evolving needs of our customers, the industry and our business.”

‘Sad day’

The Journal understands staff have been offered a full redundancy package of six weeks pay, plus the statutory two weeks.

Speaking to The Journal following the announcement of the closure, Fianna Fáil councillor Tony McCormack said it was “a sad day for Tullamore”. 

“This company has been there for over 40 years. When it started out, Ireland would have been in a recession, so they were sought-after jobs,” McCormack said.

A lot of people working there have been there since then. I’ve been talking to people this morning with 24 years and 30 years of service to this company.

“We’ve a great community here in Offaly, and we always stick together. In fact, I had a company onto me this morning who have nine jobs available and were asking me to pass the information on to those employees that contacted me.”

McCormack said that while this is not the news the employees wanted to hear this morning, those he has spoken to are “happy” with the redundancy package that has been offered. 

He earlier told The Journal that he had spoken to Tánaiste Micheál Martin and Minister for Enterprise, Trade and Employment Peter Burke about the matter.

“The Tánaiste said that any government agencies that are needed to help these people will be there, either for upskilling or anything else those employees need, will be there to help them to transition to new employment.” 

The plant is across the road from sterilisation company Steris, with McCormack suggesting it would be an ideal place for a medical device company to locate with sterilisation equipment already present.

He said he would work with Ireland’s Foreign Direct Investment Agency (IDA) “to make sure that we have somebody to move into that plant as soon as possible after it shuts down in 2026″.

Minister engaging with company

In a statement this afternoon, Enterprise Minister Peter Burke said he has been engaging with the company.

“My primary concern is for the staff and their families who are now coming to terms with the impact of this announcement,” he said.

“Following this morning’s Town Hall meeting with staff, and along with the IDA and my Department we will work with the company management and with staff on current and potential future possibilities.

We will make every effort to identify alternative employment opportunities for the staff affected by this announcement.

“As a country we are at full employment, with strong demand for medtech and life sciences skills and we will work to help employees impacted to find alternative employment.”

Burke also pointed out that Ireland has “a strong cohort of indigenous firms in the medtech sector” which Enterprise Ireland is working with to further develop and expand, including attracting experienced staff in the sector.

He said the Local Enterprise Offices will provide advice and training for any employees in the sector who have ambitions to start their own business.

Fianna Fáil MEP Barry Cowen said the closure is a significant blow to the local economy.

“The closure of Cardinal’s plant will have a profound impact on our local workforce, many of whom have dedicated years of service to the company,” Cowen said.

‘Need to attract replacement industry’

“My immediate focus is on the employees and their families who are directly affected by this decision. I have been assured that an adequate redundancy package will be put in place to recognise their commitment and contribution over the years.”

Cowen also said he had stressed to Minister Burke and the Minister of State for Trade Promotion Dara Calleary “the need to immediately focus on attracting replacement industry to our area”.

“It is imperative that we act swiftly to mitigate the impact of this closure on our region,” he said, adding he had asked Burke and Calleary to meet with councillors, the Chamber of Commerce and other stakeholders “as soon as possible”.

Fine Gael TD for Laois-Offaly Charlie Flanagan said it was a “black day for Tullamore”. 

“My thoughts and solidarity are with the over 300 Cardinal Health workers and their families at this difficult time,” he said.

“I have spoken to some workers and pledged my active assistance. Relevant state agencies are on hand to provide advice and help.

“Much can happen between now and next March to soften the blow, although it is a huge setback to economic and social life of Tullamore.”