Shannon Free Zone (SFZ) companies generate €3.5 billion in sales & spend €742m in services
SFZ companies create 576 new jobs and increase R&D expenditure by 10% to €44 million
Completion of €18.5 million Broadband Network
Shannon Development invests €11 million in property solutions for foreign and indigenous companies
Shannon Development tourism initiatives produce significant results - 32 tourism deals signed, an extra €43m visitor spend & 426,000 bed nights
Second E-Town project to be completed in ’09, bringing Shannon Development’s investment in E-Towns to €7 million
Shannon Development’s Knowledge Network business & technology parks employ over 3,200 people in 172 companies
SHANNON FREE ZONE
Shannon Free Zone (SFZ) proves resilient in turbulent economic times
SFZ companies generate record sales, with further new jobs expected in 09
The Shannon Free Zone performed well in 2008 against a difficult global business environment. During the year a number of new companies were attracted to the Zone, including Zimmer Holdings Ltd. 576 new jobs were created (a net gain of 108 jobs), a significant result in the current economic downturn. Future job prospects look bright with Shannon Free Zone on target to deliver further job announcements in 2009.
Investment by Shannon Free Zone companies continued to grow strongly during 2008 and included a €50 million investment and the announcement of 250 jobs by Zimmer Holdings Inc. a global leader in medical devices, to establish a new manufacturing operations base at the Shannon Free Zone.
Shannon Free Zone companies generated €3.5 billion in sales, 94% in exports, during 2007 (latest available statistics) with further sales growth predicted when 2008 results are available. In-house R&D expenditure by Shannon Free Zone companies saw a significant increase during 2008 to €44 million, a 10% increase on the previous year. Today SFZ employs over 7,000 people in over 100 companies.
Each year companies based in the Shannon Free Zone buy a range of service such as transport power, IT and other professional services, and in 2007 (latest available figures) this amounted to €742 million benefiting a wide range of businesses.
Shannon Development completed a master plan for the regeneration of the Shannon Free Zone that, when implemented, will result in large scale development of offices, laboratories, factories and warehouse accommodation for the next generation businesses. It will have a beneficial impact for, not only the Shannon Free Zone itself, but also Shannon International Airport and Shannon Town complex; for the Shannon/ Limerick gateway and for the Shannon Region.
PROPERTY DEVELOPMENT
Shannon Development increases its investment in property solutions for indigenous and FDI companies to €11million
Shannon Development invested over €11 million in 2008 as part of its strategy to provide a range of leading edge business property solutions for indigenous and Foreign Direct Investment Companies. The €11 million was invested in capital expenditure on building and infrastructural projects around the Shannon Region during the year.
Shannon Development owns and manages a range of 57 Technology Parks, Industrial Estates and Business Parks in the Shannon Region Counties of Clare, Limerick, North Tipperary, South West Offaly and North Kerry, which it uses to entice indigenous and (FDI) enterprises to the Region. On the property sales side during 2008, Shannon Development completed 7 land transactions and 12 building sales generating over €10.6 million for investment in future developments.
Among the capital investment project initiatives undertaken by the Company in 2008 were
€3.5 million refurbishment project at Shannon Free Zone
During the year Shannon Development commence a €3.5 million refurbishment project at Rinneanna House (formerly Aviation House), a five storey office block of almost 42,000 sq. ft. The building will be available for new lettings from February 2009, providing next generation business accommodation that will help maintain Shannon Free Zone’s leading position in the international market place.Major expansion at Kerry Technology Park, Tralee, Co. Kerry
Shannon Development has secured planning permission for a major expansion at Kerry Technology Park involving the construction of a new high-tech enterprise building at the Park. The new building at KTP will be over 26,600 sq. ft. in size and comprise self-contained office suites ranging from 1,480 sq. ft. to 6,648 sq. ft. To-date the Company has already invested €11 million in developing the 50-acre Kerry Technology Park.New building announced for Tipperary Technology Park
A major expansion for Tipperary Technology Park (TTP), Thurles, Co. Tipperary was announced by Shannon Development in late 2008. The Company has secured planning permission for a new 21,500 sq. ft. 2-storey office building at the Park. Construction work on the new building is expected to be complete by the end of 2009. To-date Shannon Development has invested €4 million in developing TTP which was officially opened in 2000.New €3 million business and Technology Park opened in Roscrea
In May 2008, Shannon Development’s new Business and Technology Park in Roscrea was opened by Minister for State, Máire Hoctor TD. Roscrea Business and Technology Park has the potential to accomodate 1,000 new jobs and, to date, the Company has invested €3 million in the acquisition and development of the Park. In addition, Roscrea will benefit from the newly completed Metropolitan Area Network (MAN) provided by Shannon Broadband Ltd.The new business park in Roscrea, combined with Birr Technology Centre, Tipperary Technology Park, and the other business parks already established by Shannon Development, is tangible evidence of the Company’s commitment to drive economic growth in North Tipperary and Offaly area.
International Science Centre, National Technology Park, Limerick
The Company completed the fit-out of 1000m2 of office space at the International Science Centre at the National Technology Park, Limerick. The fit-out comprised of four independent high technology office suites all of which were successfully leased shortly after completion of the works.Food Centre, Raheen Business Park, Limerick
The Company undertook a major refurbishment of its Food Centre in Raheen Business and Technology Park, Limerick. The works comprised of the refurbishment of four units to food processing standard units, and general infrastructure upgrading works including new landscaping.
Kilmallock Business and Technology Park, Co. Limerick
Shannon Development owns and manages Kilmallock Business and Technology Park. The Company embarked on a major expansion of the Park in 2008 with the provision of infrastructure to an additional 13 acres adjoining the existing 14 acres already developed. The extension will provide 9 new sites for new enterprise development some of which have already been sold. The first phase of the development has already been completed with the construction of a 15,000sq.ft. BES unit.Ten acre extension for Newcastle West Business and Technology Park
Shannon Development secured planning permission for a 10 acre extension of Newcastle West Business and Technology Park, Co. Limerick. The development of the Park is an integrated element of the Shannon Development’s strategy for the economic development of the town. The extension comes in addition to the completion of two new buildings during 2008.Smithstown, Shannon, Co. Clare
Six acres of previously undeveloped lands at Smithstown in Shannon have been developed; offering 9 new fully serviced sites for new enterprise development in a prime location between Smithstown and Shannon Free Zone East.Listowel Enterprise Centre Extension in Co Kerry
The Listowel Enterprise Centre in Co. Kerry underwent an extension with the construction of a new road and services opening up 6 new sites for new enterprise development at Cleveragh.Syngefield Enterprise Centre, Birr, Co. Offaly
Shannon Development was granted planning approval in November 2008 for the construction of a new enterprise centre at Syngefield Birr Co Offaly. The proposed development consists of 8 new enterprise units replacing the existing units on the same site.
Domestic Tourism visitor numbers expected to hold their own despite tourism downturn
Although final visitor numbers are not yet available for 2008, domestic visitor numbers to the Shannon Region are expected to have held their own during 2008. The home holiday market in the Shannon Region is hugely important and worth an estimated €125 million in revenue annually to the local economy.
The overall 2008 Shannon Region tourism performance is expected to be in line with other regions nationally which are experiencing a downturn. Considering the downturn in the tourism sector globally, the reduction in transatlantic capacities and the sharp economic declines in all key source markets, the overall outcome in 2008 is expected to be between -2% and + 1%. Despite this the Shannon Region expects to have hosted almost 2 million visitors with a correlating spend of €465 million in 2008.
Stimulating Market Demand for Shannon Airport Gateway
During 2008, in direct response to the slowdown in the tourism economy, Shannon Development undertook a series of tactical tourism marketing campaigns which proved highly successful. These campaigns were designed for domestic and overseas markets and set out to meet the trends in consumer behaviour, the online tourism channels and the increasingly competitive and challenging tourism environment. This was achieved through an extensive home holiday campaign completed across national, regional and local media (TV, Radio, print, web, press, direct marketing).
Among the major targets achieved by the Company in 2008 was the signing and implementation of 32 separate international marketing agreements with airlines, tour operators, travel agents and air vacation companies in North America, Great Britain and Europe. In total these generated 234,000 passengers through Shannon Airport in 2008 leading to 426,000 additional bed-nights for the Shannon Region, and an estimated visitor spend of €43 million in the Shannon Region.
As part of this the Company undertook a major joint marketing campaign with Ryanair on their UK and German routes into Shannon Airport which yielded 160,000 inbound passengers, resulted in 240,000 ‘bednights’ and over €19 million in tourism spend for the Shannon region during 2008. Shannon Development also collaborated with Tourism Ireland, Shannon Airport and City Jet on securing a new Shannon – Paris services.
During the year Shannon Development succeeded in getting its tourism message to over 220 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 43 national and international trade and consumer tourism events in 10 countries to sell the Shannon Region as a tourist destination to over 2.5 million potential visitors.
Securing high profile events for the Shannon Region
Developing sports tourism is an integral part of Shannon Development’s tourism strategy. Identifying and securing key mobile tourism events has been central to the Company’s work over the past number of years. During 2008 the Company secured five destination events for the Region, among them ‘the All Ireland Corporate Games’ which will be held in Limerick for a five year period. The company also initiated the new ‘Limerick International Rugby Sevens Tournament’, a unique cross code rugby tournament involving union and league clubs. These two high profile events will between them provide a major boost for the economy of the Limerick area over the next five years, benefiting the tourism and hospitality sectors including accommodation providers, bars, restaurants and visitor attractions.
Shannon Development again sponsored the Irish Open at Adare Manor Hotel and Golf Resort in Limerick in May which attracted over 65,000 people to the area and 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.
A total of 22 conferences and events were secured for the region with Meet Limerick Shannon, and over the next 2 years they will generate almost 5,000 delegates, 8,500 bed-nights and almost €7 million in revenues. During the year nine major international tourism trade buyer events were hosted in the Shannon Region including USTOA, Shearings, and North American Destination Expo.
Continuing to Address Open Skies
Shannon Development continued to focus on the US marketing, to help offset the 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 Ireland/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.
Tourism Product Development
The Company’s tourism product development team continue to develop, 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. The Company assisted tourism project promoters with grant applications leading to the securing of €3.5 million in grant aid from the NDP Tourism Infrastructure Scheme in 2008.
The €2 million Shannon Region International Trails Programme
In 2007 Shannon Development initiated a €2 million tourism flagship project to develop a world class recreational trail network involving, walking, cycling, water-based and other outdoor activity pursuits during the period 2007 – 2013. Called the Shannon Region International Trails Programme it has been designed to help grow visitor numbers and secure long term sustainable economic benefits for less developed areas of the Shannon Region. Significant progress was made in 2008 including the opening of 9 new loop walks in counties Clare, Limerick and Nth Tipp; 3 cycling hubs at Doolin, Nenagh and Kilmallock; 2 of the Region’s 8 national waymarked ways were upgraded (Lough Derg Way and the Ballyhoura Way); and the Ballyhoura Mountain bike trail was completed. A new trail website was launched by Shannon Development during 20008 www.shannonregiontrails.ie Over 511,000 overseas visitors participate in walking holidays in Ireland annually generating an estimated spend of €340 million.
Mid Shannon Tourism Investment Scheme
A new tax scheme for the Shannon River was launched by An Taoiseach, Mr Brian Cowen TD in June 2008. This new tax based incentive scheme designed to drive tourism investment, is being jointly managed by Shannon Development and Failte Ireland. Significant promotion of the scheme in terms of finding suitable projects is currently well underway. As a follow up to the launch event, Shannon Development organised a series of seminars around the Shannon Region to brief potential project promoters on the Scheme.
The Burren
2008 saw the successful completion of Phase 1 of the Burren Connect project by Shannon Development in partnership with Clare County Council and Geological Survey of Ireland (GSI). Key elements included new parking areas, visitor information, new signage, improved driving routes, and new web facilities. This follows the implement in 2007 of a €1.6 million tourism branding strategy for the area involving signage and the development of digital information hubs at 5 locations around the Burren.
Lakelands and Inland Waterways Initiatives
Fáilte Ireland and Waterways Ireland, in association Shannon Development, Fermanagh Tourism, Tourism Ireland and NITB are undertaking a marketing campaign to promote the complete navigable Lakeland and Inland Waterways from Lough Erne to Limerick City. Under the banner of Lakelands and Inland Waterways, the steering group’s tourism campaign involves; national TV advertising, destination marketing print pieces, promotions at key travel shows, as well as print media and PR support.
Shannon Heritage
Shannon Heritage, the tourist and heritage subsidiary of Shannon Development continued during 2008 to enhance its eight day visitor attractions and four evening entertainment venues around the Shannon Region. The Shannon Heritage Operation is vitally important to tourism in the Region as it continues to annually contribute an estimated €20 million to the local economy in resulting revenue.
The company employs a total of 300 people in peak season but on top of this would indirectly support many more jobs in the wider Region. There has been a significant downturn in tourism in 2008 but despite this the tourism subsidiary managed to attract over 500,000 visitors to its range of visitor attractions and evening entertainments.
However this decrease was expected and the market share of the Company has remained constant. As a result of the downturn the company has developed a range of new promotions to draw in more customers and an annual calendar of events designed for the domestic market, for example the Santa Experience at Bunratty Folk Park attracted a record 9,500 visitors in December ‘08. The company has continued to be innovative in its operations and this will be crucial moving forward into a more difficult tourism climate next year.
Growing the Shannon Development Knowledge Network
Shannon Development continued to work to ensure that the Shannon Region is recognised nationally and internationally as a leader in the development of world class business and technology locations, with strong links to 3rd level institutions. The Company continued its programme of investment in its Knowledge Network, a network of five business and technology parks around the Shannon Region designed to meet the needs of investors and enterprises in the Knowledge Age. Today Shannon Development’s Knowledge Network of business and technology parks employ over 3,200 people in 172 companies.
It is a long-term investment providing facilities and support systems required by entrepreneurs. In 2008 the network has seen substantial growth with 24 new client companies being facilitated by Shannon Development. In addition, a further 14 companies, already established, expanded into new accommodation on the parks.
During the year Shannon Development organised a number of successful business briefings in Cork, Galway, Limerick and Dublin for top companies and management representatives from banking, accounting, legal and venture capital companies. The event was designed to forge new business contacts for the Knowledge Network business parks.
The National Technology Park (NTP), Limerick
Shannon Development continued to work with IDA Ireland and Enterprise Ireland in providing key property solutions for a range of enterprises at the Company’s National Technology Park. A number of major expansions and investments were announced for the Park in 2008, resulting in over 380 new jobs. Cook Medical announced 200 new jobs and an investment of €25 million with government support through the IDA over the next 5 years; Vistakon Inc, a division of Johnson & Johnson announced an investment of €100 million with support of IDA and 60 new jobs bringing total employment in the company to 660; US digital technology company DTS, an IDA approved project, will locate their EU headquarters in the Park resulting in 50 high quality jobs.
Birr Technology Centre (BTC)
Over the course of the year, Shannon Development has seen a number of incubation companies at Birr Technology Centre graduate from the Centre. The Archaeology Company which has grown to over 40 archaeologists working on several sites around the country graduated in July 2008 and relocated to other offices in Birr. New clients during the year account for 18 new people working in Birr Technology Centre across five companies. Since Birr Technology Centre was opened in 2004, companies that have chosen Birr Technology Centre as a start up or expansion location for their business have been responsible for the creation of approximately 150 jobs in Birr.
Kerry Technology Park (KTP), Tralee, Co. Kerry
Several companies at Kerry Technology Park expanded during 2008, and as a result total employment increased to over 300 people. Business levels in the existing buildings are high with 80% occupancy. The planned new 3rd building at KTP will provide additional space for some of those rapidly growing companies to expand and facilities that will attract new businesses to the area. Shannon Development and the Institute of Technology Tralee completed a joint infrastructure project at the Park at a cost of €1.4 million.
Tipperary Technology Park (TTP), Thurles, Co. Tipperary
Tipperary Technology Park continued to progress in 2008 with over 140 people employed at the Park generating significant local economic impact. Both the original building and the 20, ft2 signature buildings are practically fully occupied, and the planned 3rd building will be an additional asset to the area.
Information Age Park Ennis (IAPE), Co. Clare
Shannon Development office accommodation at the Information Age Park currently accommodates 16 client companies. During the year four new companies expanded into larger office suites at IAPE. Existing client profile includes software and software development, international services, communications systems, internet services, back office support and publishing. A number of external clients are now availing of Shannon Development video conferencing facilities at IAPE to conduct meetings and interviews from a distance. Negotiations are ongoing with a number of clients to purchase sites on the Park for the development of individual premises.
Kerry Deepwater Zone
Shannon Development has granted a purchase option on 281 of its 600 acre landbank at Tarbert/Ballylongford on the Shannon Estuary to Shannon LNG, an Irish subsidiary of Hess LNG Limited, who propose to build a €500 million liquefied natural gas (LNG) receiving terminal.
During 2008 planning permission was granted to Shannon LNG by An Bord Pleanála, and associated approvals are now being sought. When complete, the Shannon LNG project will provide 60% of Ireland’s projected gas needs, resulting in security and diversity of Ireland's energy supply and more influence over price.
€18.5 Million Investment completed to deliver Broadband Connectivity in the Shannon Region
In today’s knowledge-based economy, the availability of high speed, competitively priced Broadband is critical. Businesses need world class telecommunications in order to operate and grow in today’s global economy. Significant progress continues to be made by Shannon Development through its Shannon Broadband company in ensuring that people and places in the Shannon Region have access to broadband at competitive prices.
As part of its commitment to the development of broadband in the Shannon Region, in 2008, Shannon Broadband Ltd, the public sector consortium led by Shannon Development in partnership with the regions’ local authorities, laid a network of 52kms of fibre optic cable in eight Shannon Region Towns, an investment of €12 million.
The towns are Banagher and Birr in Co. Offaly; Nenagh, Roscrea and Templemore in Co. Tipperary; Abbeyfeale and Newcastle West, in Co. Limerick; Kilrush Co. Clare. The networks have been completed on-time and within budget. The new networks will send a message to investors that these Shannon Region towns are at the cutting edge in terms of internet access and willingness to embrace the information economy.
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 over €18 million. The MAN programme is made possible by funding from the Department of Communications, Energy and Natural Resources and from the EU European Regional fund.
Planning permission secured for Ireland’s second E-Town development
Shannon Development secured full planning permission for its second E-Town development which will be located at Tarbert in Co. Kerry. Shannon Development has committed €7 million towards E-Towns developments. As part of its continued commitment to rural communities in the Shannon region, the Company will develop 8 live/work houses on a 1.3 acre site in Tarbert. The E-Towns concept has been designed as a way of regenerating smaller communities, and providing people who can work from home with an opportunity to live and work in a rural community.
Meanwhile construction work on Ireland’s first E-Town at Miltown Malbay in Co. Clare was completed during 2008, and a first client has been secured for the development. Here Shannon Development has invested €4 million comprising 12 houses with work units either attached to the house or adjacent.
Limerick Regeneration
Shannon Development welcomed the launch of the Limerick Regeneration draft master plans announced in 2008, and confirmed its commitment to working with the agencies in delivering projects that are focused on and involve the communities in the areas covered by the master plans. Shannon Development will be working to help give confidence to investors, by providing attractive and modern business space in which to locate. The Company will also be working hard to ensure that business investment in the regeneration areas will provide locally staffed jobs in locally owned businesses.
Nandi O’Sullivan
Public Relations Manager
Tel: +353 61 710259
Mobile: +353 86-2371510
Fax: 061 363180
E-mail: Click Here