Euro cuts threaten28 jobs at Perfecseal

THE economic downturn in Europe has imperilled up to 28 jobs at a Londonderry medical supplier, the Sentinel can reveal.

The jobs at the Campsie-based Perfecseal Ltd. came under threat as the big continental pharmaceutical companies it supplies were hit by delayed payments from clients such as the French and Spanish Governments.

The Sentinel can also reveal that Invest NI said it would consider clawing back £5.3m in financial assistance doled out to the company from the taxpayer which was contingent on Perfecseal employing 227 people, if the redundancies went ahead.

An internal briefing memo from Invest NI’s Acting Director of Life Sciences Stephen Wightman to the Jobs Minister Arlene Foster revealed the crisis facing the Londonderry employer which has an annual turnover of £36m and employs up to 248 people.

The document said the potential redundancies would take effect from the end of January 2012 and blamed a reduction in orders arising from the difficulties faced by the big pharma companies in Europe who buy Perfecseal’s products.

Mr Wightman states: “Invest NI has been informed that Perfecseal Ltd has had discussions with staff and the Union in relation to 28 potential redundancies.

“The company has advised that it is not yet in a position to confirm when a formal redundancy process may start but has suggested that the process may commence at the end of January 2012.”

He explained that Perfecseal has been a leading supplier of specialised packaging materials to the global healthcare industry and is a division of the Bemis Group, headquartered in Minneapolis, US, which has annual sales of 4.8bn dollars.

Mr Wightman goes on to explain how remote Londonderry is not immune to the economic downturn across Europe and that the potential job losses arose from difficulties in France and Spain.

“In October 2011, the Perfecseal General Manager had advised that the company order book had reduced. Perfecseal in Londonderry supplies large pharmaceutical companies mainly based in Europe.

“The Perfecseal customers are putting orders on hold and are indicating that, for example, French/Spanish government agencies are advising of delayed payments to suppliers,” he told the Minister.

Invest NI also said it would consider clawing back £5.3m in assistance transfered to the Bemis subsidiary from the taxpayer if the jobs went.

Mr Wightman stated: “The £5.3m of financial assistance related to capital spend and achieving staff numbers of 227. If 28 staff are made redundant then the total staff would fall to 220.

“The situation will be closely monitored in relation to potential clawback however Invest NI would want to try and work with the company to achieve a mutually satisfactory position.”

Advising the Minister what to say if she was asked about the redundancies he told her to point out that: “Perfecseal is a significant employer in the Life Sciences sector in the North West; Perfecseal has been impacted by the current economic climate and the economic uncertainty being felt by both consumers and industry; It is recognised that a business must sometimes take difficult steps in response to circumstances outside its control; Invest NI continues to work with Perfecseal in relation to potential future expansion opportunities.”

The Sentinel asked Perfecseal for further details about the potential redundancies but no comment was forthcoming.

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