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Getinge relocates production from Puerto Rico to award-winning US facility

Getinge relocates production from Puerto Rico to award-winning US facility

The Medical Systems business area has decided to relocate the manufacture of products for cardiac surgery from the unit in Dorado, Puerto Rico, to the unit in Wayne, New Jersey, in the US.

The announced production transfer is expected to be completed before the end of 2009. The production unit in Wayne has been rewarded for its quality work and, for example, has been named one of the ten best plants in the US by Industry Week magazine.

The production unit in Dorado, Puerto Rico, which manufactures products for cardiac surgery, currently has approximately 170 employees.

“Since the acquisition of the cardiac and vascular surgery divisions, we have been working proactively to find a long-term production solution for cardiac surgery production, which is currently conducted in a unit owned by Boston Scientific,” says Getinge CEO Johan Malmquist. “The Wayne unit has available capacity and meets all the criteria that we apply to a competitive and advanced production environment.”

The costs for the production relocation outlined above are expected to total between SEK 50 and 60 million and are expected to lead to annual cost savings of between SEK 60 and 70 million as of 2010.

As announced earlier, Getinge anticipates that the cost-related synergies in conjunction with the acquisition of cardiac and vascular surgery operations from Boston Scientific will amount to a total of between SEK 100 and 120 million per year. Restructuring costs are expected to amount to approximately SEK 85 million.

For further information, contact:

Ulf Grunander
+46 (0)35-15 55 00

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