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Friday, March 19 2010

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250 jobs to go as Glaxo shuts lab

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Thursday November 12 2009

One of the world's biggest pharmaceutical firms is to close down one of the country's oldest laboratories with the loss of 250 jobs.

Healthcare giant GlaxoSmith Kline announced yesterday that it is shutting the Stiefel plant in Sligo, less than four months after taking over the skincare business.

Glaxo said operations at the north-west plant would wind down over the next four years.

Tanaiste Mary Coughlan expressed her deep disappointment at the job losses.

Ms Coughlan said she had noted a long "run-down" over the next four years and said she would ask the Industrial Development Agency, Enterprise Ireland, FAS, and the local enterprise board to support workers.

Glaxo said it sincerely regretted the potential impact of the closure and job losses and said it will do all it can to help staff through the difficult period.

Joe Burns, managing director of Stiefel Laboratories (Ireland), said the decision was part of Glaxo's global review. He added: "This proposal in no way reflects on the performance or commitment of staff at the Sligo site."

Glaxo said the decision to shut the Sligo business was due to under-utilised capacity in Stiefel and across other company sites.

It said production would continue in Sligo until all work is transferred to alternative facilities.

Glaxo bought Stiefel in a $2.9bn (€1.9 bn) deal in July.

The company is a specialised pharmaceutical business focused on treating dermatological and skin conditions such as acne, dermatoses, and fungal infection.

The Sligo facility, which has subsidiaries in more than 30 countries, was established in 1975 and manufactures a range of liquids, lotions, creams, gels, and sachets.

Local Fine Gael TD John Perry warned that Sligo was losing jobs at an alarming rate.

Labour's Susan O'Keefe said the local economy was in freefall and called for government action on jobs.

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