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hospital bed plant to close s.a. doors

by:Topson     2020-08-13
Two months after Getinge Group acquired its specialty bed business, the Swedish healthcare company disclosed that it was shutting down its San Antonio manufacturing plant and leaving 95 people out of work.
Arjohuntlegh, President and CEO of The Getinge division, said the move was part of the consolidation of plant production plans in Poland and China.
A factory in Perth, Australia will also be closed.
Meanwhile, arjohuntlegh plans to use San Antonio as its global R & D center, Miles said.
\"We will strengthen our R & D capabilities in San Antonio,\" Miles said . \".
The company will increase its R & D staff in San Antonio, but Miles has no numbers or timelines for expansion.
Arjohuntlegh has about 50 R & D employees in San Antonio and will start accepting more projects, Myers said.
He said the company employs about 50 more employees in San Antonio, including marketing, distribution and quality and regulatory controls.
They will stay in the company.
In a letter this week, Getinge\'s arjohuntlegh Department informed the closure of the San Antonio manufacturing plant.
This letter is required by the notice of federal Worker Adjustment and Retraining (WARN)Act.
The layoffs will start with 35 people in June, followed by 59 in September, and finally because the factory at 4958 Stout Drive is scheduled to close by the end of that month.
Getinge completed the acquisition of the KCI treatment support system (TSS)
The transaction was worth about $0. 275 billion in November.
Hospital beds, mattresses for sale and rental
Replacement System and patientmobility units.
When the deal was announced in August, Getinge reported that TSS employs about 1,300 people, including about 200 in San Antonio.
As part of the TSS acquisition, arjohuntlegh acquired the San Antonio plant.
The property will go public for sale, Miles said.
The evaluation value of the building and the land is about $4.
8 million, according to the website of the Bexar assessment area.
The factory employs engineers, sheet metal manufacturers, welders, fitters, etc.
Earlier last year, KCI announced that it would seek a \"strategic alternative\" for TSS \".
Just a few months after London\'s leveraged acquisition of KCI in November 2011
Private equity firms Apax Partners and affiliates of two Canadian pension investment management companies.
The deal is worth about $6. 3 billion. Last week, J. P.
Morgan cazeno published a research report in London stating that the TSS transaction represents a change in the \"Getinge acquisition strategy --
Assets with low growth and low profit margins (a)
Previous focus on high growth/high profit margin business.
According to the report, \"the performance of TSS in KCI\'s hands is not encouraging, and revenue has declined every year since 2007.
\"This includes a drop of 10% per year in the three years ended 2011.
TSS generated about $0. 247 billion in revenue last year.
\"The challenge for Getinge now is to stabilize the decline (
We think this can be done with a little investment)
Come up with some cost, \"J. P.
Morgan cazeno reports.
Myers said the decision to close the San Antonio manufacturing plant was in line with arjohuntlegh\'s strategy to improve efficiency and strengthen its competitive power.
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