Teva closing Ashdod plant, laying off 85

Teva Ashdod workers' demonstration  photo: Histadrut

Teva says it has failed to find a buyer for the facility.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will close its plan in Ashdod and lay off half of its employees. "As Teva announced in December, the Teva Ashdod plan is included in the restructuring process taking place as planned in Israel and worldwide in order to reduce the company's cost base because of its heavy debt and the difficult business circumstances it faces," Teva said in a statement today.

"In accordance with its announcement at that time, Teva examined the possibility of selling the plant in recent months, but unfortunately found no suitable buyer. The company is consequently being forced to close down Teva-Ashdod.

"This is a painful and saddening, but nevertheless unavoidable, decision, because some of the plant's activity is not part of Teva's core business, and because production of IV bags, which accounts for half of the activity at the plant, is unprofitable.

"Teva will terminate the employment of half of the plant's 175 employees in the coming months, while the remaining employees can continue working there until its final closure in March 2019. Teva will act with respect, fairness, and sensitivity, and grant Teva-Ashdod's employees optimal severance terms above and beyond the legal requirements, plus job placement, training and professional consultation services.

"Teva is conducting a dialogue and consultation process with representatives of the employees and the Histadrut, and hopes that dialogue will again prove useful in concluding this difficult process by agreement."

Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Teva Ashdod workers' demonstration  photo: Histadrut
Teva Ashdod workers' demonstration photo: Histadrut
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