LONDON, Feb 13 (APM) - Eli Lilly's planned 200 million euros expansion in Cork, Ireland, has been put on hold due to concerns about new U.S. president Donald Trump's plan to make reforms to the pharma industry.
Ireland's Evening Echo said on Sunday that U.S.-based Lilly is postponing plans at the Kinsale site that would have created hundreds of new jobs.
Lilly started production at the Kinsale facility in 1981 and more than 500 people are employed at the site currently.
Trump met senior pharma leaders in the U.S. at the end of January, afterwards pledging to take action on high drug prices, increase pharma jobs in the U.S. and streamline regulation.
Stephen Ubl, president and chief executive of trade body PhRMA, said at the time that Trump's plans could lead to the creation of 350,000 jobs in the U.S.
A Lilly spokesperson told the Irish Examiner an eventual decision will be made by Lilly's global board at the "appropriate stage of the process".
The paper quoted University College Cork economist Declan Jordan said that it was likely to be "prudence and caution first" from Lilly's management that led to the decision, not fear of the Trump administration.
"I think we are overplaying the risk. We don't exactly know why the decision was made.
"In general, we have a very good value proposition for foreign direct investment in terms of workforce, access to Europe, etc. We are still bringing in far more jobs than we are losing and there is no reason to think that will change," said Jordan.
Fianna Fáil spokesperson for enterprise, Niall Collins, told the Irish Examiner it could have a "chilling effect". He said the St Patrick's Day visit to the White House was of special significance this year because of the uncertainty being created by president Trump.
"I am hearing unofficially of many decisions like Eli Lilly's being postponed. It is a huge worry. Going to the White House on March 17 is not to everyone's liking but you have to take every opportunity you get. There is Irish livelihoods at stake."
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