Drop in demand from China behind move to shut Irish plant
The Wyeth Pharmaceuticals plant in Askeaton, Co Limerick. Photo: Don Moloney/Press 22
The company that operates the huge Wyeth Nutrition infant formula factory in Askeaton, Co Limerick, Ireland said it plans to cease operations there in early 2026.
A high tech research and development facility at the same site will close by the first three months of 2025, the company said. Combined job losses are expected to be approximately 542.
Wyeth is one of the mid-west regions major employers and a huge buyer of Irish dairy.
In a statement, the company said it is 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 Greater China and Asia.
The company said the decision to cease production in Ireland came after what it called external trends significantly impacted 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 9 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.”
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 that the business, part of Nestle, recorded the 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.
