Realignment Would Enhance Operating Efficiency, Drives Growth
Opportunities
CLARENCE, N.Y.--(BUSINESS WIRE)--Jul. 2, 2012--
Greatbatch Medical, a subsidiary of Greatbatch, Inc. (NYSE:GB), today
announced a proposal to consolidate its orthopaedics manufacturing
operations. The move is designed to enhance operating efficiencies and
drive global growth opportunities.
Under the proposal, most major functions currently performed at the
company’s sites in Orvin and Corgemont, Switzerland would transfer into
existing Greatbatch Medical facilities in Fort Wayne, Indiana and
Tijuana, Mexico by the close of 2013. There are currently 196 persons
employed in the Orvin and Corgemont facilities, of which up to 90% could
be affected by the current plan.
The presentation of this plan follows particularly difficult
orthopaedics market conditions since Precimed became part of Greatbatch.
Beyond the economic slowdown immediately following the acquisition,
customers have started to put more and more emphasis on product pricing
as well as slowed down the rate at which they launch major joint
replacement programs.
“This consolidation would optimize utilization of our existing operating
infrastructure while enhancing the overall competitiveness of the
business,” said Mauricio Arellano, president of Greatbatch Medical. “The
resulting cost savings would permit continuous investments in both our
commercial strategy and medical device innovations.”
In accordance with Swiss regulations, employees have a consultation
period to provide individual and collective input on the proposed plan
prior to any final decision being made. The intended close of the
consultation period is July 20, 2012.
The company remains committed to the global and European orthopaedics
markets, with the proposed structure being even more capable of meeting
customer design and technical support needs. A limited number of sales,
administrative and technical roles would likely remain in Switzerland,
aligned with Greatbatch Medical’s regional operating model.
Mr. Arellano continued, “We are intensely focused on growth in our core
business, growth through targeted acquisitions and growth through new,
innovative medical devices. Our intention to relocate select production
to more highly-efficient sites would be yet another step toward our
vision of developing complete medical systems and devices.”
About Greatbatch Medical
Greatbatch Medical is part of the Greatbatch, Inc. (NYSE:GB) family of
brands. Greatbatch Medical is committed to the design and manufacture of
critical technologies used in medical devices for the cardiac rhythm
management, neuromodulation, vascular access and orthopaedic markets. To
learn more about Greatbatch Medical, please visit www.greatbatchmedical.com.
Some of the statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and section 21E of the Securities Exchange Act of
1934, as amended, and involve a number of risks and uncertainties. These
statements can be identified by terminology such as “may,” “will,”
“should,” “could,” “expects,” “intends,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential” or “continue,” or the
negative of these terms or other comparable terminology. These
statements are based on the Company’s current expectations. These
forward-looking statements include the timing and elements of the
proposed plan and the timing and form of related charges. Statements
regarding future events are based on the Company’s current expectations
and are subject to associated risks and uncertainties related to the
completion of the proposed plan in the manner anticipated by the
Company. These forward-looking statements may differ materially from
actual future events or results due to a variety of factors, including:
the Company’s ability to implement the proposed plan; and possible
changes in the size, timing and components of the proposed plan or the
expected costs and changes associated with the proposed plan due to the
collective input by employees. The Company undertakes no obligation to
revise or update publicly any forward-looking statements.
Source: Greatbatch Medical
Greatbatch Medical
Christopher Knospe, 716-759-5727
cknospe@greatbatch.com