Investing in Ireland Issue 41, January 2020
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www.pwc.ie/fdi
Investing in Ireland
Issue 41, January 2020
Welcome to the January 2020 edition of PwC’s The issue also looks at investing in regional Irish
newsletter on foreign direct investment (‘FDI’) locations and how Ireland will continue to promote
in Ireland. areas outside of Dublin to attract foreign investment
(see page 5).
The significant number of job and investment
announcements over the last few months reflects Please do not hesitate to contact myself, any
the continued FDI growth in Ireland (see page 2). member of our team, or your usual PwC Ireland
contact at any stage. We would be happy to tell
Ireland is an attractive location for businesses
you more about the topics raised in this issue or to
seeking a competitive environment for R&D
include any interested parties on our mailing list.
activities. This issue explains the main reasons for
Ireland becoming one of the leading locations for Remember to visit our FDI website for more
FDI companies carrying on R&D activities and also updates and detailed information, including a range
explores innovation generally (see page 4). of recent publications.
Liam Diamond
+353 1 792 6579
+353 86 405 6965
liam.diamond@pwc.com
1
Recent FDI investment
announcements
Adesto Technologies Corporation, a leading Liberty Insurance, a provider of motor home and
provider of innovative application-specific commercial insurance to the Irish market, announced
semiconductors and embedded systems for the IoT, plans to create over 120 new roles over the next
have announced plans to partner with the European three years by expanding its operations in Co. Cavan
Space Agency for the production of new innovative
technologies which will see the creation of senior Otterbox Products EMEA, a smartphone and
engineering roles in its Cork and Dublin offices tablet case manufacturer, announced plans to
expand it’s EMEA HQ to South Mall in Cork with a
ARTeSYN, a biopharma processing manufacturer, new office with capacity for up to 100 employees
has announced plans to expand its operations in
Waterford by adding 50 new roles in Production, Overstock, an online retail shopping site, opened
Engineering, Customer Service and Research & its new European base in the IDA business park in
Development over the next 3 years Sligo and plans to recruit 20 employees by the end
of the year
EJ, a provider of access solutions for municipalities,
utility companies, airport & port authorities, has Panasonic Avionics, a provider of customized
celebrated the opening of a new production facility in-flight entertainment and communications
on a 2-hectare site in Birr, Co. Offaly solutions to airlines worldwide, announced plans to
establish a new repair shop in Dundalk
Elavon, a provider of innovative card payment
solutions, has invested in the refurbishment of its Patreon, a membership and payment platform, has
office, making Arklow, Co. Wicklow a mini Fintech established its new European Headquarters in Dublin
hub in Ireland which will create 30 new jobs over the next 2 years in
Product, Engineering and general administrative
Eurofins, an international life sciences company, roles
has opened a new Global Software Engineering
Centre in Leopardstown, Co. Dublin which has led PublicRelay, a leading US media monitoring and
to the creation of 150 high-tech jobs analytics firm, announced plans to open an office in
Cavan which is expected to create 20 new jobs
Fort Wayne Metals, a manufacturer of precision
medical wire, cables and composite wire Travelport, a leading technology company serving
components for the medical device industry, has the travel and tourism industry, has announced
opened a new €10m manufacturing facility in 22 new jobs and plans to recruit further after
Castlebar leading to the creation of 80 new jobs over investing in their Dublin operations through the
5 years, nearly doubling their current workforce creation of an inside sales centre
FundRock, an alternative investment fund manager, WuXi Vaccines, a leading global open-access
has opened a new office in Limerick employing 30 biologics technology platform, announced plans to
people with plans to expand this in the future build a $240m vaccine production facility in Dundalk
which will see the creation of 200 new jobs for the
Huawei, a leading ICT solutions company, has town over 5 years
opened a new state-of-the-art Dublin office which
will create 100 jobs over the next three years
Janssen Sciences Ireland UC, part of the
Johnson & Johnson family, has announced the
expansion of its manufacturing building in Co. Cork
which will create 200 new jobs
2
“This is a very special day for all of us in FundRock, marking a
significant milestone in our global strategy. As well as inaugurating
our new office, today is another step in demonstrating FundRock’s
full commitment to Limerick, the mid-west region and the funds
ecosystem in Ireland.
Creating our International Centre of Excellence in Limerick enables
us to offer challenging and rewarding fund management
opportunities to highly skilled candidates, graduate and experienced
from Limerick and the entire region including those from further afield
who are looking to work closer to home.”
Conor O’Brien, Managing Director of FundRock
“When Huawei first
opened our office in
Dublin we had only four
employees. 15 years later
we have 180 staff and over
the next three years we
will create 100 new jobs.
The business in Ireland
has significantly grown
and as we have grown,
“This expansion is a testament to the hard work and talent so too has Ireland. We
of our Irish employees. Their expertise and dedication have appreciate the trust and
been fundamental to the growth of Fort Wayne Metals support of our customers
Ireland, and I have every confidence that they will be and individual consumers
successful as they take on the challenges of manufacturing along the journey.”
precision nitinol wire for our customers around the world.” Mr. Guo Ping, Rotating Chairman
Scott Glaze, CEO of Fort Wayne Metals of Huawei
3
Innovation in Ireland
Innovation is a cornerstone of the Irish economy The Irish workforce is both talented and highly
and a key factor in maintaining Ireland’s educated in Ireland, with 55% of individuals aged
competitiveness in the global market, while also 25-34 years old having participated in third level
providing employment and sustainable growth education. The Science Foundation Ireland (SFI),
in the economy. Ireland has become one of the the national foundation for investment in scientific
leading Research Development and Innovation and engineering research, has invested in the
(RDI) locations in the world. development of high levels of skills, training and
experience in the area of innovation.
1st
in the world for 1st
attracting high value investment projects. in the world for
labour productivity in industry.
The Irish Government has supported this growth
through initiatives such as Innovation 2020 which was The SFI also invests in the fields of science,
launched in 2015 to support excellence and talent technology, engineering and mathematics (STEM).
relating to RDI. One of Innovation 2020’s key pillars It is vital for Ireland today to have a strong pipeline
is investing in public research to drive innovation. of STEM to support the growing investment in
innovation. In 2019, the Government announced an
Ireland’s commitment to innovation was investment of €3.6 million to fund projects dedicated
demonstrated in Budget 2020 which increased to educating and engaging the public in STEM. They
the R&D Tax Credit from 25% to 30% for micro also have several initiatives which inspire female
and small companies. This credit is given in participation in STEM. The programmes aim to engage
addition to the normal corporation tax rate of and encourage progression for females, elevate,
12.5%. Its purpose is to encourage both foreign advance and support the females in these fields.
and indigenous companies to undertake new
and/or additional R&D activity in Ireland. The
Knowledge Development Box adds another 1st
dimension to Ireland’s best in-class tax offering.
This allows companies to avail of a reduced in the world for
corporation tax rate of 6.25% on profits arising attracting and maintaining talent.
from qualifying R&D activity carried out in Ireland.
25% - 30% R&D Tax Credit
6.25% Knowledge Development Box Tax Rate
12.5% Corporation Tax Rate
Excellent IP Tax Regime
4
Athlone Bridge on the river Shannon
Investing in the Regions
Regional development was a major component can live and work. A co-priority of the project is to
of IDA Ireland’s strategy between 2015 and 2019. enhance accessibility between key urban centres of
With 58% of employment now outside of Dublin, population and their regions. This means ensuring
the highest number of people ever employed by IDA that all regions and urban areas in the country have
clients outside of Dublin, and with more jobs added a high degree of accessibility to Dublin, as well as
in the regions during the past four years than at any to each other.
time over the past 17
years, it is clear that this Furthermore, as part
regional strategy is of Project Ireland
working. Employment levels in 2040, IDA Ireland has
foreign owned companies put in place property
While these initial gains solutions, strategic sites
made in deepening and
have reached 229,057 and grants in all regions
growing investment in order to deliver
outside of Ireland’s main new FDI Investments
cities has been a 58% of all IDA client- and high-quality jobs.
success, further supported jobs are now Ireland’s ability to secure
promotion and located outside of Dublin significant new large-
advancement of the scale capital investment
regions will remain a key in all regions is partly
focus of the Government dependent on the ready
Since 2015, 407
to maximise the potential availability of serviced
of the regional areas. investments have been sites of scale with
won for the regions appropriate zoning and
Project Ireland 2040 is capacity for required
the government’s long utilities to match the
term overarching strategy Since 2015, almost needs of large capital
to make Ireland a better 27,000 net jobs have intensive projects.
country for everyone and This action will build
its plans will no doubt
been added on the ground
on IDA’s current €150
make Ireland’s regions in locations outside million regional property
even more attractive to of Dublin investment programme
foreign investment. As that has delivered new
part of this strategy, the advanced buildings
Urban Regeneration in Athlone, Castlebar,
and Development Fund (‘URDF’) of €2bn has been Sligo, Galway, Limerick, Tralee and Waterford,
established to support the compact growth and among other locations. The property programme
sustainable development of Regional urban centres will be complemented with IDA Grants programmes
to create more attractive places in which people across the regions.
5
FDI news & events
European Financial Forum
The 5th European Financial Forum will take place across a range of finance sectors, from the world
on 12 February 2020 in Dublin Castle. The aim of of venture capital and banking to accounting and
the Forum is to bring together senior executives to corporate law.
explore the disruptive forces that are shaping the
financial sector.
Business and Finance Awards
The Business and Finance Awards are the longest
Women in Finance Awards running and most coveted business awards
The Women in Finance Awards, Europe’s programme in Ireland and have been recognising
largest diversity initiative, came to Ireland on 28 excellence in Irish Business for over 40 years.
November 2019. Already established in London, The awards took place at The Convention Centre
the Women in Finance Awards is Europe’s largest Dublin, on 12 December 2019. Honourees at the
diversity initiative recognising the high-achievers, 2019 awards were; the former President of the
advocates, and role models for women in the European Central Bank Mario Draghi and the
sector. This event, hosted at Clontarf Castle, renowned producer and educator Lord David
rewarded the exceptional achievement of women Puttnam CBE.
6
Ireland economic update
GDP is expected to grow to 3.5% in 2020
New dwelling completions accelerated to 23.2%
Construction output increased by 5.9%
The unemployment rate is projected to decline from 5.2% in 2019 to 5.0% in 2020
4/5 people in Ireland believe that Ireland’s membership of the EU is a positive thing
Leading the way
1st 1st
in the world for: in Europe for:
• Government investment incentives1 • Overall business productivity and
efficiency 1
• Attitudes towards globalization 1
• The agility of companies1
• Attracting and retaining talents1
• Paying business taxes8
• Image abroad and branding1
• Science, technology, engineering, and
• Business attitudes and values1
mathematics (‘STEM’) graduates5
• Flexibility and adaptability 1
• SMEs selling online, e-commerce
• City with the highest economic turnover, cross-border SMEs online and
potential (Dublin)3 open data5
• Business friendliness (Dublin)3 • Innovators in SMEs, employment
• FDI and technology transfer 4 impacts, and sales impacts6
• Life sciences (Dublin)7
• High value exports4
1st
in the Eurozone for:
• Real GDP Growth1
• FDI Global City of the Future
(Dublin)3
• Jobs created from foreign direct 1 IMD World Competitiveness yearbook 2019
investment relative to 2 IBM Global Trends 2019
population size 2 3 Global Cities of the Future 2018/19 – FDI Intelligence
4 The Global Talent Competitiveness Index 2019
• Relationship of pay to productivity 4
5 The Digital Economy and Society Index (‘DESI’) Report 2018
• Attracting talented people from 6 European Innovation Scoreboard 2018
abroad 4 7 The world’s most competitive cities report 2018
8 PwC/World Bank Group ‘Paying Taxes’ Report 2019
7Would you like to know more? Should any of the topics covered in this newsletter be of particular interest to you, please do not hesitate to contact any member of the FDI team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know. Please click on our website for additional information. Various topics of interest for foreign investors can be found in the publications link in the tax section, including: Budget 2020 Brexit CEO Survey Previous issue of Investing in Ireland Tax Facts 2019
Contacts
Jean Delaney Mary Honohan James McNally
+353 1 792 6280 +353 1 792 8609 +353 1 792 6844
jean.delaney@pwc.com mary.honohan@pwc.com james.o.mcnally@pwc.com
Liam Diamond Susan Kilty John O’Leary
+353 1 792 6579 +353 1 792 6740 +353 1 792 8659
liam.diamond@pwc.com susan.kilty@pwc.com john.oleary@pwc.com
Brian Leonard Ronan MacNioclais Feargal O’Rourke
+353 1 792 6179 +353 1 792 6006 +353 1 792 6480
brian.a.leonard@pwc.com ronan.macnioclais@pwc.com feargal.orourke@pwc.com
Denis Harrington Joe Tynan Garrett Cronin
+353 1 792 8629 +353 1 792 6399 +353 1 792 8807
denis.harrington@pwc.com joe.tynan@pwc.com garrett.cronin@pwc.com
Andy O’Callaghan
+353 1 792 6247
andy.ocallaghan@pwc.com
www.pwc.ie/fdi
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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