Cardinal Health, a global medical device giant, recently announced a major decision to close its factory in Tullamore, County O'Farley, Ireland in the spring of 2026 and cease production of a product. This decision will result in approximately 315 employees losing their jobs. It is reported that the manufacturing operations of the factory will be relocated to Mexico and Costa Rica to better meet the needs of the company's global business, manufacturing, and supply chain operations.

Jiadeno announced this plan in September 2024 and stated that the first batch of layoffs will begin in March and April 2025, while the second batch of layoffs will take place in April and May 2026.

01. The final shutdown date is May 2026
The history of Tullamore factory can be traced back to 1982, when it was established by Sherwood Medical. Over time, the factory has undergone multiple changes of ownership. In 1998, the factory was acquired by Tyco Healthcare along with Sherwood Medical. Subsequently, in 2007, Tyco Healthcare spun off its healthcare business and established Covidien, with the Tullamore factory also becoming part of Covidien. In 2015, Covidien was acquired by Medtronic for $49.9 billion, and the Tullamore factory was also incorporated into Medtronic's portfolio. However, in 2017, Medtronic sold 17 company facilities, including the Tullamore factory, to Gardner for $6.1 billion.

At its peak, the factory employed about 650 employees and made significant contributions to the local economy. In 2010, 199 employees were laid off, and there have been voluntary layoffs over the years. There are currently about 315 employees, with a total monthly salary of over 1 million euros. The closure of the factory is expected to be carried out in stages, with a final closure date of May 2026.

The closure of this factory has had a significant impact on the local economy and society. Since its establishment in 1982, the Tullamore factory has been an important part of the local economy, providing numerous job opportunities and tax contributions to the area. Irish Republican MP Barry Cowan described the factory closure as a "significant blow to the local economy" and "a dark day," emphasizing that it will have a profound impact on the local workforce. Despite efforts by the local government and unions to provide support and reemployment opportunities for affected employees, factory closures will still have long-term impacts on the local community.

Jia De Nuo Company stated that the decision to close the factory is part of its regular evaluation of global business, manufacturing, and supply chain operations, aimed at ensuring that the company can meet the constantly changing needs of customers, industries, and businesses. However, for the affected employees and local communities, this decision undoubtedly brings enormous challenges and uncertainties.

Despite the significant impact of the factory closure on the local economy and society, Jiadeno stated that it will do its best to provide assistance and support to the affected employees. Insiders revealed that factory employees will receive full layoff compensation, which is six weeks' salary for each service year, plus two weeks of statutory compensation. At the same time, the local government and trade unions will actively intervene to provide retraining and employment opportunities for unemployed employees, in order to alleviate the impact of this incident on the local community.

02. The decline of tax havens in Europe
Ireland's low taxation is a national policy, with a long-term corporate income tax rate of 12.5%, which is significantly lower than the average level of other EU countries such as France (32%), Germany (30.2%), Italy (24%), and the United Kingdom (increased to 25% after 2020). This low tax policy has strong appeal to multinational corporations, especially high-tech enterprises such as medical devices. Due to the fact that such enterprises typically require significant investment in research and operation, Ireland's low tax policy effectively reduces their costs and increases profit margins.

To attract investment from multinational corporations, the Irish government has introduced a series of tax incentives. Among them, the R&D tax credit policy is particularly prominent, and eligible enterprises can enjoy a maximum of 20% R&D tax credit, effectively reducing the tax burden of enterprises and promoting technological progress. In addition, Ireland encourages multinational corporations to transfer intellectual property from abroad to Ireland and provides tax subsidies. Medical device companies can enjoy low tax incentives by transferring their intellectual property to Ireland.

The medical technology industry has a high dependence on intellectual property and technological research and development, and Ireland's low tax rates and tax incentives are particularly suitable for this industry. The R&D tax credit and patent rights tax exemption policies help medical device companies reduce R&D costs and accelerate technological innovation. In addition, Ireland's geographical location, well-developed infrastructure, and open economic environment make it an ideal choice for medical device companies to establish their European headquarters. According to statistics, 14 out of the top 15 medical technology companies in the world have operations in Ireland, highlighting Ireland's strong attractiveness in this field. Currently, Ireland has attracted over 300 medical technology companies to settle in, with foreign companies accounting for more than one-third and a total of over 100 companies.

These medical technology companies directly employ over 48000 people in Ireland, creating a large number of job opportunities for the local area. At the same time, Ireland's annual export value of medical technology products is as high as about 12.7 billion euros, making it the second largest exporter of medical devices in Europe, highlighting its important position in the global medical technology market.

Faced with the continuous strengthening of international regulation on tax avoidance, Ireland joined the global lowest corporate tax rate agreement in 2021, setting the global lowest tax rate at 15%. The setting of a minimum tax rate of 15% has significantly reduced the space for many multinational medical technology companies to avoid tax burdens through tax planning. In addition, factors such as inflation, the strengthening of the US dollar, and supply chain issues have had an impact on the "profit margins and profitability" of healthcare technology multinational companies staying in Ireland.

The Irish medical technology industry is facing turbulence, with multiple factories closing and layoffs
In recent years, several international medical technology giants, including Gardiner, have announced the closure of their factories in Ireland and carried out large-scale layoffs.

In 2024, BD Medical announced that its factory located in Drogheda will begin the closure process in 2025. The Drogheda factory was established in 1964 and is one of BD Medical's four major bases in Ireland, mainly producing cancer treatment, interventional radiology, and intensive care equipment. However, in July 2024, BD Medical announced plans to begin the first round of layoffs in March 2025, involving approximately 110 employees, with the remaining layoffs scheduled between March 2025 and September 2026. BD stated that the closure of the factory is a result of the company's global manufacturing and supply chain network review, aimed at ensuring operational efficiency. But this decision will undoubtedly have a huge impact on the local job market, expected to result in about 200 employees losing their jobs.

In February 2024, Thermo Fisher announced that it was considering closing a factory in Ireland, a decision that could affect 60 employees.

In April 2023, Medtronic announced its decision to exit the ventilator production line and stated that this could result in up to 40 job cuts in Ireland. After acquiring Covid Medical in 2015, Medtronic relocated its headquarters to Dublin, Ireland. Since 2023, Medtronic has undergone multiple rounds of global layoffs, with specific regions and numbers undisclosed, but Ireland as its headquarters is inevitably affected.

In addition, pharmaceutical companies such as Novartis and Pfizer, as well as technology giants such as Amazon and Intel, have also carried out large-scale layoffs in Ireland.

The layoffs and factory closures of Gardenor in Ireland not only reflect the strategic decisions of global medical technology companies in global layout adjustments, supply chain optimization, and responding to market changes, but also highlight the competitive pressure and transformation challenges within the industry.

Source: http://qixieke.com/Font/index/detailPage.html?id=3397-19