The decision by California-based Amgen, the world's largest biotechnology company, to locate a new production facility in Ireland rather than Switzerland has rekindled the debate over the complexity of Swiss bureaucracy, which some claim is deterring foreign companies from investing there.
Amgen had been considering building its new plant on a greenfield site in Galmiz, western Switzerland, but chose instead to invest more than $1 billion in a new process development, bulk manufacturing and fill and finish facility in Cork, Ireland.
By 2010, Amgen expects to employ more than 1,100 people at the new Irish facility, which will produce products for the growing number of patients that the company serves in Europe. It expects to begin operating in Cork in 2009.
"Amgen is pleased to establish a site in Ireland as part of our ongoing global development and manufacturing expansion," announced Fabrizio Bonanni, Amgen's senior vice president, Manufacturing.
"The company considered several attractive sites in other countries, but chose Ireland due to its thriving biotechnology community, infrastructure to support biologics manufacturing and attractive business climate," he added.
According to Ireland's Minister for Enterprise, Trade and Employment, Micheál Martin, investments of this scale "speak volumes" about Ireland’s ability to compete and win high-tech business from some of the world's largest companies.
"The Irish Government, IDA Ireland and local partners made a concentrated group effort to win these projects and Amgen," Mr Martin stated.
Stephane Garelli, a professor at the Lausanne-based IMD, one of the world's leading business schools, believes this was a crucial factor in Amgen's decision to go to Ireland.
A frequent critic of Switzerland's ponderous administrative system, Professor Garelli says that Switzerland must learn the lessons of the Amgen affair and emulate the Irish model by forming a single investment authority to liaise between government and the investment community.
"In Ireland companies deal with one authority, but in Switzerland you end up discussing things with 20 different people and you still don't know who you should be dealing with," Professor Garelli told Swissinfo in an interview published on Tuesday.
However, Professor Garelli said that Switzerland could also play to its considerable strengths, such as low rates of tax; Switzerland remains the jurisdiction of choice for multinationals to set up holding companies or regional headquarters, as evidenced by Amgen's decision to locate its European HQ and form a new entity, Amgen International, in Zug.
"Amgen's choice of Zug as the headquarters for international commercial operations reflects the outstanding business environment Switzerland offers to biotechnology companies," explained Rolf Hoffmann, senior vice president of Amgen's international operations.
"Switzerland is an ideal location from which to further expand Amgen's commercial operations into new markets, he added.
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