Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) announced yesterday that, it will cease production at its manufacturing facility in Cidra, Puerto Rico, during the fourth quarter of 2006, as part of the company's global rationalization strategy. The measure is designed to further improve efficiencies, supply chain management and competitive positioning following the acquisition of Ivax in January 2006.
The former Ivax facility at Cidra has approximately 550 employees and originally manufactured 50 products. The majority of these products have already been successfully transferred to other manufacturing facilities around the world resulting in improvements in service levels and further enhancing Teva's global leadership advantage. The closure will save Teva an estimated $45 million 2007.
Teva will work closely with employees and local authorities to ensure as seamless a transition as possible and to offer financial and placement assistance to those staff affected by the closure. Teva's active pharmaceutical ingredients (API) manufacturing facility in Puerto Rico is not affected by the closure.
Headquartered in Israel, 80% of Teva’s sales are in North America and Europe.
Published by Globes [online], Israel business news - www.globes.co.il - on August 24, 2006
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