One of the industry’s leading CDMOs is exploring the possibility of closing its solid dose manufacturing facility in Ashton-under-Lyne, UK.
The company announced this week that it is undertaking a “strategic review” of the site, which has not been profitable in years.
Sweden-based Recipharm has production facilities in several countries and employs around 5,000 people. If that Ashton plant closes, the company said that it could jeopardize the jobs for the facility’s 140 employees.
“We have taken this decision as there is no likely prospect of the facility in Ashton-under-Lyne being able to deliver an acceptable return in the medium term,” the company’s CEO, Thomas Eldered, said. “It has clearly been a difficult choice as any closure will affect approximately 140 of our employees who have demonstrated commitment and hard work to provide high quality products and services.”
According to Eldered, Recipharm has lost an average of $2 million (before interest, taxes, depreciation and amortization) at the site for the last three years.
The company said it will work to “redeploy” the site’s employees if the facility is shuttered.
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