Article

Schering AG To Cut Plants and Staff

Schering AG To Cut Plants and Staff

Schering AG (Berlin, Germany) Chief Financial Officer Joerg Spiekerkoetter revealed on Monday that the company would lay off 2000 employees and eliminate 12 of its 24 pharmaceutical manufacturing sites in an effort to increase profitability by 18% for 2006.

Sites in Mobara (Japan), Nanjing (China), and Tikkakoski (Finland) have already been terminated with additional plants in Orizaba (Mexico), Bedford (MA, USA), Lys-lez-Lannoy (France), Alcalá de Henares (Spain), Sakura (Japan), Osaka (Japan), Jakarta (Indonesia), Buenos Aires (Argentina), and Bogotá (Colombia) slated for closing by 2010.

The restructuring plan is part of a program the company calls “Focus,” which was established to help streamline Schering’s portfolio and improve its profit margin. In the 2004 fiscal year, the company reduced costs across the board in administration, engineering, research, and development. 

“Based on our solid business performance and further efficiency measures, we will continue to invest in growth opportunities and to improve our profitability,” said Hubertus Erlen, Chairman of the Executive Board of Schering AG. “We are committed to even further increase our operating margin above 18% beyond 2006.”

–George Koroneos

Newsletter

Get the essential updates shaping the future of pharma manufacturing and compliance—subscribe today to Pharmaceutical Technology and never miss a breakthrough.

Related Videos
A global supply chain map, visualizing the complex network of transportation routes and distribution centers | Image Credit: © venusvi - stock.adobe.com
Shortcut from point A to point B | Image Credit: © Olivier Le Moal - stock.adobe.com
Behind the Headlines, Episode 21: Waters-BD Merger, Merck’s $10B Bet, and Biotech’s Investment Frontiers
Wooden blocks spelling TARIFFS are placed on a map of North America, specifically over the United States and Mexico | Image Credit: © Rokas - stock.adobe.com
Jason Waite, International Trade Expert, Alston & Bird
Simona Guidi, Associate Director, ProPharma
Tore Bergsteiner
Behind the Headlines, Episode 20: CAR-T Milestones, Abbvie and Eli Lilly M&A Moves, and More
Related Content