West Pharmaceutical Services, Inc, manufacturer of pharmaceutical packaging and delivery systems, today announced its intention to consolidate selected operations in order to improve operating efficiencies.
The company expects to close its manufacturing facility in Montgomery, Pennsylvania, USA, and to downsize operations at its facility in St. Austell, Cornwall, UK.
The Pennsylvania facility has been engaged primarily in contract manufacturing of molded plastic components and assemblies for consumer-product applications. The Cornwall facility produces molded elastomeric components for disposable medical devices, as well as elastomeric and plastic components used in pharmaceutical packaging. Ancillary to the manufacturing changes West is also planning to eliminate a limited number of other operational and administrative roles.
"The changing landscapes in the healthcare and consumer markets we serve require that we regularly evaluate our operations and adapt to changing conditions in order to successfully compete," said Donald E. Morel Jr., Ph.D., chairman and chief executive officer.
"The plans announced today will reduce the manufacturing capacity devoted to product lines that no longer support sustainable, competitive operations, and will unfortunately result in the loss of a number of jobs over time.
The costs of the restructuring are expected to be between $18 million and $21 million. When fully implemented, the changes are expected to reduce annual operating costs by approximately $12 million.
The closure of the Pennsylvania operation will result in approximately 170 job losses, beginning in January 2011 and continuing into the third quarter of 2011. Activity at the plant will wind down as production is transferred to other facilities, predominantly in the US.
The ancillary restructuring of administrative, engineering and other operating positions will result in the net reduction of approximately 50 positions at other locations and will be accomplished through attrition and early retirement wherever possible.
