Schering-Plough consolidates operations
This article was originally published in The Tan Sheet
Executive Summary
Schering-Plough will begin "phasing out" manufacturing operations at its Manati, Puerto Rico site, with complete closure anticipated by the end of the year, the pharmaceutical firm announces June 1. The company also anticipates workforce reductions at its facilities located in Las Piedras, Puerto Rico and New Jersey. The facilities consolidation will affect a total of approximately 1,100 positions, mostly in 2006, and is part of an effort to "streamline its global supply chain and further enhance the company's long-term competitiveness," the firm states. Schering-Plough expects $235 mil. to $260 mil. in charges associated with severance pay, fixed asset and inventory write-offs, and accelerated depreciation and closure costs, about half of which will be incurred in the second quarter of 2006. "The remaining expenses are expected to be recorded in the second half of 2006 as incurred," the firm says. Products affected by the closing of the Manati facility include Afrin (oxymetazoline HCl) nasal spray. Manufacturing operations for the topical sinus spray will be relocated to the Cleveland, Tenn. facility, according to Schering-Plough...