Patheon to consolidate Puerto Rico operations
Patheon, a Canadian drug developer and global provider of manufacturing services to the international pharmaceutical industry plans to close or sell its plant in Caguas and consolidate its Puerto Rico operations into its manufacturing site located in Manati.
Patheon, a Canadian drug developer and global provider of manufacturing services to the international pharmaceutical industry plans to close or sell its plant in Caguas and consolidate its Puerto Rico operations into its manufacturing site located in Manati.
"We will consolidate our people, resources and investments at Manati and therefore concentrate on growing one "flagship" site," said Wes Wheeler, chief executive of Patheon.
"It is not practical to operate two plants within close proximity of each other," he added.
The company said it will offer available positions at Manati to affected employees in Caguas.
Patheon estimates that the consolidation will result in total respositioning expenses of approximately US$7m, of which around US$2.4m will be booked in the first quarter of 2010.
The company also expects to receive an impairment charge of approximately US$1.3m in the first quarter of 2010.
The consolidation will be completed by the end of the 2011 financial year.
