Written answers

Tuesday, 7 July 2009

Department of Enterprise, Trade and Employment

Job Losses

12:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 96: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the announcement of the loss of 177 jobs at a company (details supplied) in County Waterford; the discussions she has had with the industrial development agencies with a view to securing replacement jobs; and if she will make a statement on the matter. [27452/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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On the 25th June 2009 ABB advised IDA that it has decided to close their electrical transformer manufacturing operation in Waterford with the loss of all 185 jobs. Closure will take place by March 2010. The plant has sufficient contracts in place to ensure that the factory remains open until March 2010. The Waterford operation has been operating at break-even and an expected upturn in business from growth in wind generation has not materialised.

Key to IDA Ireland's Strategy for County Waterford within the South East Region is to progress the development of a knowledge based economy so that the county and particularly the Gateway of Waterford City can compete both nationally and internationally for foreign direct investment. IDA Strategy for County Waterford includes

The provision of world class property solutions of scale in the Waterford City area and also developing property solutions in the county town of Dungarvan, with appropriate supporting infrastructure in both cases.

Working with local development partner agencies in Waterford City and County to advance critical infrastructure, both hard and soft, which will contribute to a sustainable business environment for the long term.

IDA Ireland is also actively engaged with the existing IDA client base in the City and County to encourage their transition to continually higher value activities and to promote further investment in Ireland.

Waterford has a long and strong track record as a centre of manufacturing expertise. Waterford has a key strength in engineering, in both indigenous and overseas sectors. In more recent years however, these have been giving way to newer, more advanced manufacturing, particularly in the Life Sciences sector and also to International & Financial Services activities. For companies in lower value manufacturing, the business environment has become more challenging in recent years.

Currently there are 31 IDA Ireland supported companies in Waterford City and County employing approximately 5,960 people. Clear evidence of a transition to more knowledge based and higher value activity is seen in the resilience of companies such as Bausch & Lomb, Teva, Honeywell, GlaxoSmithKline, as well as newer additions to the county's portfolio, such as Citi Hedge Fund Services, Genzyme and Sun Life Financial. In marketing Waterford for new foreign direct investment (FDI), IDA Ireland is focused on attracting overseas companies in the services and knowledge-based industries, including advanced manufacturing. Sectors of focus in the medium term are Life Sciences, International and Financial Services and High Technology Engineering.

Key interventions in support of the above efforts in recent years have been the development of the Waterford Business & Technology Park (28 hectares), the Dungarvan Business Park (additional 14 hectares developed) and a large scale 55 hectare Greenfield site in Belview.

IDA Ireland recognises that Waterford City has some way to go before it has developed the critical mass of infrastructure, population and economic development to assert itself as a true regional gateway. Key positive developments that have occurred or are about to take place that will enhance Waterford's attractiveness for FDI and greatly encourage Waterford's economic success and national profile into the future include the following:

The completion of the outer ring road in Waterford City has already eased local traffic congestion and improvements on all radial routes into the City are also progressing well.

Construction of the Waterford City By-pass including a new cable stay bridge is underway and is due for completion in Q4 2009. The N9 upgrade to high specification dual carriageway between Waterford and Dublin has also commenced and is targeted for completion by 2010.

Major commercial/retail developments in Waterford City such as the Railway Square development and the planned development by KRM of a large scale shopping facility, Hotel and Conference Centre, apartments and car-parking on a 5 acre site in the City Centre.

The City Council is investing €20m on the development of a Historic Quarter in the City Centre including the redevelopment of the Theatre Royal.

High profile national and local events such as the Tall Ships Race 2005 and the Spraoi Street Festival. The Tall Ships Race is due to be staged in Waterford for a second time in 2011 and this will bring a lot of additional visitors to Waterford.

Further development of WIT, particularly the development of the new Campus at Carriganore with its flagship project being the Arc Labs facility which houses the Telecoms Software and Systems Group, itself a key magnet of attraction for Waterford.

Recent completion of the Metropolitan Area Networks in Waterford City and Dungarvan.

Developments at Waterford Port – a 190 metre quay extension has been constructed involving investment of €10m by the Port of Waterford.

These and other developments will provide a critical mix that will be a vital stimulus for further investment and economic development in Waterford City and the wider county including Dungarvan.

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