bioMérieux exits Portland site production of prepared media, resulting job losses

By Alexandria Pešić

- Last updated on GMT

Related tags Manufacturing Industry

bioMérieux will discontinue manufacturing media products for clinical applications and transfer production of other products made at its Portland, US, site elsewhere as part of a restructuring program.

Manufacturing of the culture media used for routine testing in clinical laboratories will be phased out of at the plant, the sale of which generates $9m in revenue each year.

Instead, bioMérieux wishes to focus its attention for the North American clinical microbiology market on high medical value tests such as its chromID and LyfoCult products.

“For the North American food and biopharmaceutical markets, our strategy is to supply the most extensive line of culture media and reagents,”​ a bioMérieux spokesperson told in-PharmaTechnologist.

All culture media and reagent solutions for the pharmaceutical and food industries, including prepared bottled, tubed and plated media used for sterility testing and environmental monitoring will be manufactured at the firm’s Lombard, US, site that specialises in products for industrial applications.

Meanwhile, the manufacture of other specialty products, such as LyfoCults, Barrier Wrap, and LockSure will be transferred to other sites belonging to bioMérieux, said the spokesperson.

The Oregon site became part of bioMérieux two years ago through the acquisition of culture media and micribiological solutions provider, PML Microbiologicals, but the France-based firm expects to end production at the unit by the second half of 2011, inevitably cutting around 100 jobs at the plant.

The spokesperson said “Where possible, qualified employees will be redeployed into existing open positions within the organisation,”​ and confirmed that other employees will receive a severance package and assistance in their career transition.

The impending job losses will take place gradually since the site will not fully close until all industry related products and LyfoCults are transferred to alternative manufacturing sites, the company said.

bioMérieux estimates the decision to restructure its business by terminating manufacture of its prepared media and relocating the manufacture of other products will cost $5m, though the firm is confident the restructuring program will eventually bring around $3m in annual savings.

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