Firm will shut down or sell its Caguas facility and will operate from Manati.
Patheon has decided to consolidate its Puerto Rico operations into its manufacturing site located in Manati and will close or sell its plant in Caguas. Patheon is a provider of contract development and manufacturing services ranging from preclinical development through to commercial manufacturing of an array of dosage forms including parenteral, solid, semisolid, and liquid forms.
“We remain committed to growing our contract manufacturing business in Puerto Rico,” says Wes Wheeler, CEO and president. “We believe our customers continue to need a high-quality and reliable supplier on the island.
“However, we have decided that it is not practical to operate two plants within close proximity of each other. We will consolidate our people, resources, and investments at Manati and therefore concentrate on growing one flagship site.”
The company estimates this consolidation will result in total repositioning expenses of approximately $7 million, of which about $2.4 million will be booked in the first quarter of fiscal 2010. Patheon also expects to log an impairment charge of roughly $1.3 million in the first quarter of fiscal 2010. The consolidation is expected to be completed by the end of fiscal 2011.