‘Horrendous for the workers and a complete shock’ – Fears for more than 540 jobs as Limerick’s Wyeth plant announces closure

A high-tech research and development facility at the same site in Askeaton would close by the first three months of 2025, the company said.

Wyeth is one of the mid-west region’s major employers and a huge buyer of Irish dairy.

In a statement, the company said it was beginning a consultation with all employees and their representative unions.

“Regrettably, today’s announcement means approximately 542 colleagues will be placed at risk of redundancy.”

The Limerick plant was part of food giant Nestlé’s acquisition of Pfizer Nutrition in 2012. It manufactures infant-formula products exclusively for export to markets in China and Asia.

The company said the decision to cease production in Ireland came after what it called external trends significantly affected demand for infant nutrition products in the greater China region.

“The number of new-born babies in China has declined sharply from some 18 million per year in 2016 to fewer than nine million projected in 2023. The market, which had previously been reliant on imported infant-formula products, is also seeing rapid growth in locally produced products.”

Siptu officials are seeking urgent talks with Nestlé Wyeth following the shock news.

“Today’s announcement is horrendous for the workers and their families and has come as a complete shock,” said Siptu organiser Ciara McMahon-Flavin.

“We are calling for an urgent meeting with management to ensure that a future is maintained for this longstanding and successful site.”

The union’s sector organiser, Neil McGowan, said the plant had provided good employment in the area for decades.

He said it was vital that the decision to close was reversed and as many jobs as possible could be maintained on the site.

“We are also calling for immediate intervention from the Government to save these jobs that are so vital to the mid-west region,” he said.

Siptu divisional organiser Greg Ennis said he would raise the announcement at a European Federation of Food, Agriculture, and Tourism Executive Committee meeting tomorrow in Brussels.

He said he would do this with a view to engaging with a Nestlé European Works Council.

Production is now being moved from Askeaton to factories in Suzhou, China and Konolfingen in Nestle’s home country of Switzerland.

The company said it had failed to find a buyer for the operation in Ireland.

“These proposals have been carefully considered and are no reflection on the excellent contribution made by our employees in Askeaton over many years,” Nestlé said.

The most recent accounts filed by Wyeth Nutritionals Ireland Ltd show the business, part of Nestle, recorded a pre-tax loss as revenues rose by €5m to €225.6m last year.

The firm’s salary bill totalled €50.9m, showing average pay of €103,895 per employee.

The business recorded an operating profit of €1m and interest payments of €2.6m resulted in the pre-tax loss of €1.59m.

Enterprise, Trade and Employment Minister Simon Coveney said the closure of the plant was “hugely disappointing news” and that his department would begin engagement with workers and management.

“My first thoughts are with the Wyeth workers and their families as they received this news this afternoon.

“It is hugely disappointing news as this facility has provided fantastic employment in Limerick and made a huge contribution to Ireland’s economy.

“Officials in my department will now begin a process of engagement with the management and workers in the company.

“The full range of state supports will be made available to the employees, and we will examine each and every option to ensure that the best possible outcome is reached for all concerned,” Mr Coveney said.

Kieran O’Hanlon, a Fianna Fáil councillor who worked at the plant for 33 years before taking a redundancy package around 16 years ago, said the closure would be devastating.

“There are people employed not alone from Askeaton, but Newcastle West, Foynes, Shanagolden and Adare and even as far as Charleville in Cork.”

He said there had been around 600 employees when he worked there as an electrical supervisor – plus a lot of contractors who maintained the plant and machinery.

“I remember the first computer coming in to control the filling operation,” he said. “As well, you had the drying and the processing. It was like a dairy industry really where they mixed the product and dried it out and made it into powder and that was canned then.

“The operation included putting the cans into cardboard boxes and onto pallets. There was a huge warehouse there as well. When I was there they shipped all over the world, to Africa, and the Middle East, but in recent years they seem to have been concentrated on the Chinese market.

“I’m a former mayor of Limerick and they were very kind to present a gold-link chain that had the Wyeth logo on it.”

He said it was one of the best employers in the country when he worked there, with salaries and terms and conditions that were “second to none”.

“It will be a massive loss to the area,” he said. “This is surprising. The reason they came to Limerick is that it is near the Golden Vale. The raw materials were there.

“There seemed to be a shortage of infant nutrition in America recently, so it’s really surprising that this is happening. I believe they were trying to find a buyer, but hopefully the Government can find an alternative employer.”

He said the company was paying around €1m in rates to the county council each year, and that would be a huge loss too.