UPDATE 1-Millipore to cut or relocate 140 jobs; take charge
(Recasts; adds job cut details, share movement)
By Aradhana Aravindan
BANGALORE, Sept 15 (Reuters) - Millipore Corp MIL.N, a maker of purification systems used in drug manufacture, said it plans to close four facilities, either cut or relocate up to 140 jobs to reduce costs, and record related charges of $25 million to $30 million.
The move is in response to current market conditions that primarily caused revenue declines in its Bioprocess division, which serves the biopharmaceutical manufacturing market, the company said in a filing with the U.S. Securities and Exchange Commission.
In July, Millipore said its Bioprocess unit, which accounts for more than 40 percent of its revenue, will be hurt by reduced purchases from its largest customers for the rest of the year.
The company plans to close its facilities in Lincoln Park, New Jersey, Consett and Cambridge in the United Kingdom, and Nodinge in Sweden, spokesperson Karen Hall said in an e-mail to Reuters.
The company currently employs about 6,000 people, according to its website.
Millipore said it expects to record about $8 million to $10 million for employee-separation costs primarily over the next three fiscal quarters.
The company expects the consolidation activities, which would be completed by the end of 2010, to result in cost savings of $11 million to $15 million annually.
Spokesperson Hall said the company intended to hire employees as it moved work to new locations.
Shares of the Billerica, Massachusetts-based company were down 99 cents at $72.76 in afternoon trade on New York Stock Exchange. (Editing by Deepak Kannan)
© Thomson Reuters 2016 All rights reserved.