Article

ePT--the Electronic Newsletter of Pharmaceutical Technology

Schering-Plough Restructures Manufacturing Operations

Schering-Plough Corporation (Kenilworth, NJ) announced plans to phase out manufacturing operations at its Manati, Puerto Rico site, expecting to discontinue operations there by the end of 2006.

Schering-Plough Corporation (Kenilworth, NJ, www.schering-plough.com)announced plans to phase out manufacturing operations at its Manati,Puerto Rico site, expecting to discontinue operations there by the endof 2006. The company also will reduce its workforce at manufacturingfacilities in Las Piedras, Puerto Rico and in Kenilworth and Union, NewJersey.

The actions will eliminate roughly 1100 positions, primarily in 2006.Approximately 600 regular, full-time positions will be eliminated inPuerto Rico, including 550 in Manati and 50 in Las Piedras.Schering-Plough expects to continue to employ roughly 475 people in LasPiedras. The company also will eliminate 500 regular, full-timepositions in Kenilworth and Union.

Schering-Plough expects these actions to generate annual costreductions of $100 million in 2007. Total expenses associated withthese actions will be between $235-260 million: $60-70 million forseverance; $85 million for fixed asset and inventory write-offs; and$90-105 million for accelerated depreciation and closure costs. Thecompany will incur $130 million of these expenses in the second quarterof 2006, with the balance in the second half of 2006.

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
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
DC skyline at night with view of the White House and the Washington Monument | Image Credit: © Jessica - stock.adobe.com
Related Content