The Shannon Free Zone is Ireland’s largest multi-sectoral business park outside of Dublin and plays a significant role in acting as a west of Ireland counter pole to east coast enterprise developments. SFZ employs over 7,000 people in over 100 companies. Sales figures are always a barometer of growth in the Knowledge Economy, and the Shannon Free Zone International Services sector has grown steadily accounting for 70% of total Shannon Free Zone sales compared to 56% in 2000. Shannon Free Zone companies generated €3.3 billion in sales, over 90% in exports, during 2006 (latest available statistics).
The Shannon Free Zone performed well in 2007 against a difficult global business environment in the manufacturing area. During the year a number of new companies were attracted to the Zone, including Whitehorse Insurance, PC Tools Software and Genesis Leasing. 354 new jobs were created, but 485 job losses were also recorded.
Investment by Shannon Free Zone companies continued apace during 2007, including a €100+ million investment by Schwarz Pharma. In-house R&D expenditure by Shannon Free Zone companies was significant at €40 million.
Shannon Development finalised a master plan for the regeneration of the Shannon Free Zone in June 2008. The aim of the plan is to ensure the Shannon Free Zone’s further enhancement as one of Ireland's premier locations for modern internationally traded manufacturing and international services. All key stakeholders in the area were consulted as part of the process. The implementation of the plan will result in large scale development of offices, laboratories, factories and warehouse to provide accommodation for the next generation businesses who will maintain Shannon Free Zone’s leading position in the international market.
Shannon Development continued to provide property solutions for indigenous and foreign direct investment enterprises around the Shannon Region in 2007. Shannon Development invested over €8 million in capital expenditure on building projects around the Shannon Region during the year. On the property sales side, the Company completed 17 land transactions and 10 building sales generating over €14 million for investment in future developments.
Shannon Development entered into 64 new leases with business clients during 2007. This reflects new business start ups in Shannon Development provided property and existing companies who have availed of Shannon Development property to expand or relocate their business. There were over 100 lease renewals completed with clients during 2007, an indication of the continued commitment of client companies who continue do business from the Region at existing levels, and who continue to rely on Shannon Development to provide their property solutions.
Among the property initiatives undertaken by the Company in 2007 were:
Roscrea Business Park
Shannon Development has invested over €3 million in land acquisition and development at Roscrea Business and Technology Park. Infrastructure provisions have been completed and landscaping is currently under way. The Park was officially opened by Minister for State, Maire Hoctor TD, in may 2008 and it will be actively marketed during 2008.
Master plan for Archerstown, Thurles
Shannon Development has finalised a master plan for its 60 acre landbank at Archerstown, Thurles, Co. Tipperary. The landbank is presently zoned for industrial use. This development will complement the work already undertaken by the Company at Tipperary Technology Park. The master plan for the landbank incorporates infrastructure requirements including road access, utility service requirements and landscaping. The development of the Archerstown land bank will ensure that Thurles remains an attractive location for industrial investment.
Nenagh Business Park
Shannon Development continued to market its 50 acre Business Park in Lisboney, Nenagh as an investment location. The private sector is also responding to the increasing demand for industrial space and a 30,000 sq. ft. Advanced Technology Unit was completed at Stereame, Nenagh. This development was promoted and encouraged by Shannon Development and supported under the BES scheme administered by the Company. This facility will add to the attractiveness of the town as an investment location.
New Business Park for Templemore
Shannon Development has started work on the development of a new business park in Templemore, Co Tipperary, on a 9 acre site. The site will be available for development in September 2008.
Newcastle West Business Park
Shannon Development’s Newcastle West Business Park is an integrated element of the Company’s strategy for the economic development of the town. Six one acre sites have been sold to-date. Two buildings were completed and occupied in early 2008. The extension of infrastructure to the remainder of the Park will be undertaken during 2008.
Kilmallock Business Park
Planning permission for the second phase of a 14 acre business park in Kilmallock was granted to Shannon Development at the end of 2007. The first phase of the development has already been completed with the construction of a 15,000sq.ft. BES unit and work has commenced on the provision of infrastructure.
Decentralisation Leads To Economic Boost For Three Shannon Region Towns
The ISDN (Integrated Shannon Decentralisation Network) initiative established by Shannon Development in association with business groups and local authorities in the towns of Kilrush, Listowel and Newcastle West was successful in promoting the towns as locations for decentralisation. As a result of the ISDN initiative, 2007 saw the opening of offices for the Revenue Commissioners in Kilrush and Listowel, and the commencement of construction of a new office for the Revenue Commissioners in Newcastle West. Altogether, a total of 150 staff will transfer - 50 staff to each location. This was the only collaborative submission received by Government in respect of decentralisation.
Preliminary figures show that the Shannon Region attracted over 2 million visitors and generated over €443 million in tourism revenue in 2007. Shannon International Airport recorded over 3.63 million passengers during 2007.
During 2007 Shannon Development’s tourism marketing team succeeded in getting its tourism message to over 250 million potential Shannon Region visitors world-wide. This was achieved through focused advertising, e-marketing, travel media familiarisation trips and a range of domestic and overseas tourism trade campaigns. For example the tourism marketing team attended over 40 national and international trade and consumer tourism events and undertook a number of focused e-marketing campaigns with key partners.
The Domestic holiday market continued to be a critical component of the Shannon Region’s tourism business. It attracted 865,000 visitors in 2007, a 13.6% increase over 2006 figures and generated €150 million in revenue for the Shannon Region. In response to the demand for short holiday trips, Shannon Development’s 2007 domestic marketing plan focused on ways to get a positive Shannon Region short breaks message to the consumer.
Shannon Development became an official sponsor of Irish Open at Adare Manor Hotel and Golf Resort in Limerick in May 2007. In addition to its sponsorship the Company undertook a marketing campaign to promote the event. The event was watched by an estimated international TV audience of 100 million people in 30 countries worldwide, and was a fantastic vehicle to promote the Shannon Region and its superb golf tourism product to a growing golf audience. Golf tourism in Ireland is worth €100 million annually in revenue to the economy and attracted an estimated 126,000 overseas visitors in 2006.
Shannon Development undertook a focused US tourism marketing campaign beginning in early 2007, to help offset the likely fallout for Shannon Airport and the Shannon Region from ‘Open Skies’. This involved undertaking a special programme of promotional work including visits to key airlines flying into Shannon, among them Delta Airlines, Continental Airlines, Aer Lingus US, US Airways and American Airlines, and initiating a number of US travel trade and consumer promotions.
Shannon Development also targeted airline vacation companies and leading tour operators promoting Ireland as a destination for American holidaymakers, among them Sceptre Tours, CIE Tours and Celtic Tours. The move was taken in support of Tourism Ireland’s destination marketing efforts in the US. One of the initiatives to come from this was a series of e-blasts by Sceptre Tours, supported by Shannon Development, which yielded over 7,000 additional US visitors (mainly travelling Aer Lingus) to Shannon, an estimated 30,000 bed nights for the Shannon Region in the vital off season/winter period.
During the year Shannon Development worked with private sector promoters and investors on a range of tourism product development projects with a potential pipeline investment value of over €250 million around the Shannon Region.
The Company’s tourism product development team continue to concept, promote and secure strategic projects and initiatives targeted to achieve the Company’s objective of a balanced spatial spread of tourism development across the Region, securing projects of scale which offered significant economic benefit of regional and national significance, and supporting initiatives and innovative projects to help position the Shannon Region to effectively compete for emerging market opportunities. Among achievements in 2007 were:
In early 2007 the company identified a preferred developer in relation to the future development of the Shannon Development owned Kilrush Marina and surrounding landbank. The project will involve a total overall investment of €50m to be developed over three phases and will include: doubling the berthage capacity of the marina and upgrading of marina facilities to international standard; development of marina holiday homes and residential accommodation; new hotel with leisure and conference facilities; retail / commercial park and office accommodation.
The Company has worked successfully with Limerick County Council and Ballyhoura Failte to bring forward a set of proposals to establish a strong cluster of mutually supporting projects in South East County Limerick. The zone includes Kilfinnane, Kilmallock and Lough Gur and elements of the strategy carried out in 2007 include the completion of 90km of innovative mountain biking trails at Ballyhoura/Kilfinnane, and the preparation of a tourism development strategy which aims to develop Lough Gur as an archaeological and heritage park.
In 2007, Shannon Development in partnership with Offaly County Council, Waterways Ireland and other interests brought forward a coordinated strategy to develop a cluster of tourism related projects in Birr, Banagher, and Shannon Harbour.
Shannon Development, in partnership with Clare County Council and community interests, continued to implement the €1.6 million tourism development strategy for the Burren. A signage and a branding programme involving the development of digital information hubs at 5 locations around the Burren was completed in 2007. A local awareness programme was also undertaken with schools in the Burren.
Shannon Heritage, the tourist and heritage subsidiary of Shannon Development continued during 2007 to enhance its eight day visitor attractions and four evening entertainment venues around the Shannon Region. The Shannon Heritage Operation is an important asset to the Shannon Region tourism industry as it contributes an estimated €20 million annually to the local economy in spin-off revenue. The Company employs a total of 300 people in peak season but on top of this indirectly supports many more jobs in the wider Region.
Shannon Heritage attracted over 580,000 people to its range of day visitor attractions and evening entertainments during 2007, a 3.5% increase on its 2006 figure. Record numbers of visitors attended last year’s calendar of events devised by Shannon Heritage to meet the growing demand from the domestic market. Shannon Heritage continued to market the Cliffs of Moher Visitor Centre on behalf of Clare Co. Council, and visitor numbers for 2007 were in excess of 940,000.
The Company undertook a programme of investment in the Shannon Development Knowledge Network of five business parks around the Shannon Region to ensure that the Region can meet the needs of investors and enterprises in the Knowledge Age. The Knowledge Network is a long-term investment designed to ensure that all parts of the Region have the facilities and support systems required by entrepreneurs who want to develop businesses that can compete on the global market.
The National Technology Park (NTP)
The National Technology Park (NTP) in Limerick had a strong level of performance in 2007. Shannon Development worked closely with IDA Ireland during the year resulting in three Foreign Direct Investment (FDI) companies choosing NTP as their preferred location. There were ACI Worldwide; AR, and Rovsing, creating 151 new jobs.
Birr Technology Centre (BTC)
Over 60 people were employed in 7 companies at Birr Technology Centre during 2007. Built around the ruins of the former mill building, the Centre links the old with the new and is an important symbol of the re-generation of the town. Shannon Development announced the appointment of a new Regional Development Executive in Southwest Offaly, based in the Birr Technology Centre. An essential part of the role will be to maximise the economic potential of the Birr Technology Centre.
Kerry Technology Park (KTP)
Several companies expanded during 2007 and total employment at Kerry Technology Park increased to 250. In addition to this KTP and the Institute of Technology Tralee continued their joint approach to development. In 2007 both organisations embarked on an infrastructure development project which will open up the central core area of the KTP – the shared space at the centre of the Park.
Information Age Park Ennis (IAPE)
InnovationWorks Information Age Park Ennis has a total of 15 companies employing 44 people at year end. In addition there have been enquiries for additional space from four existing companies for expansion purposes. Sale has been agreed on two sites which will lead to the construction of an additional 40,000 sq ft of space for which there continues to be strong interest.
Tipperary Technology Park (TTP)
Tipperary Technology Park continued to progress during 2007 with over 100 people employed at the Park generating significant local economic impact. The 25,000 ft2 signature building is almost fully occupied, and designs for a second facility have just begun.
In April 2006, Shannon Development granted an option agreement on 281 of its 600 acre landbank at Tarbert/Ballylongford to Shannon LNG, an Irish subsidiary of Hess LNG Limited.
The purpose of the option agreement was to allow time for detailed design and appraisal of their proposal to build a €500 million liquefied natural gas (LNG) receiving terminal on the Shannon Estuary, and for full consultation with the relevant authorities and with the local community. Last September, Shannon LNG submitted a planning application to An Bord Pleanála and received approval in April 2008. The Shannon LNG project has the potential to provide 60% of Ireland’s projected gas needs, resulting in increased security of supply and more influence over price.
In May 2008, applications for a judicial review of An Bord Pleanala’s approval were made in the High Court by objectors to the Shannon LNG project. The applications for judicial review proceedings will be heard in the Commercial Court in the Autumn of this year.
As part of its commitment to the development of broadband in the Shannon Region, Shannon Broadband Ltd, a public sector consortium led by Shannon Development, in partnership with the regions’ local authorities, appointed a contractor in 2007 to lay a network of 52kms of fibre optic cable in eight Shannon Region Towns, an investment of €12 million.
The towns selected were: Abbeyfeale and Newcastle West, in Co. Limerick; Kilrush Co. Clare; Nenagh, Roscrea and Templemore in Co. Tipperary; Banagher and Birr in Co. Offaly. The network being installed around the towns is called a ‘Metropolitan Area Network’, or ‘MAN’ for short. The work is due for completion in early 2008.
Over 57kms of fibre optic cable was laid in Limerick City in phase one of the project at a cost of €6.5 million, bringing total investment in broadband infrastructure to-date in the Shannon Region to €18.5 million. In today’s knowledge-based’ economy and society, the availability of high speed, competitively priced Broadband is critical. The new networks will send a message to any investor that these Shannon Region towns are at the cutting edge in terms of internet access and willingness to embrace the information economy.
Established in 2003, Shannon Broadband Ltd is the first public sector regional telecoms company to be set up in Ireland. It was set up to accelerate competitively priced digital broadband ‘connectivity’ throughout the Shannon Region. The MAN programme is made possible by funding from the Department of Communications, Energy and Natural Resources and from the EU European Regional fund.
Shannon Development has committed €4 million towards construction work on Ireland’s first E-Town at Miltown Malbay in Co. Clare. Work began October 2006 and was completed in early 2008. The E-Towns project in Miltown Malbay, comprising 12 houses with work units either attached to the house or adjacent, has been designed as a way of regenerating smaller communities, and of providing people who can work from home with an opportunity to live and work in a rural community.
In May 2007 Shannon Development announced a €2 million support package for its new ‘Shannon Region Trails Programme’. The aim of the Programme is to establish the Shannon Region as a world-class destination for walking cycling, water-based and other outdoor activity pursuits during the period 2007 – 2010.
Over 280,000 overseas visitors participate in walking holidays in Ireland annually generating an estimated expenditure of €140 million. Over 100,000 overseas cyclists holiday in Ireland annually and spend over €86 million.
Significant progress was achieved in 2007 with the completion of 8 looped walks, totalling 70km. The Company completed phase one of a dedicated cycle trail from Shannon Airport to Ennis during 2007.
Nandi O’Sullivan
Public Relations Manager
Tel: +353 61 710259
Mobile: +353 86-2371510
Fax: 061 363180
E-mail: Click Here