Getinge to Shift Cardiac Surgery Unit Production to US From Puerto Rico

Getinge AB said its Medical Systems business will incur costs of $50 million to $60 million Swedish crowns through relocating cardiac surgery unit production from Dorado in Puerto Rico to Wayne, N.J. 

The company said the production move is expected to be completed by 2009 and will lead to annual cost savings of 6$0 million to $70 million crowns by 2010.

‘The Wayne unit has available capacity and meets all the criteria that we apply to a competitive and advanced production environment’ said Getinge chief executive Johan Malmquist.

The company reiterated it anticipates overall synergies related to its acquisition of cardiac and vascular surgery operations from Boston Scientific to amount to $100 million to $120 million crowns per year, and overall restructuring costs, including the move to Wayne, to amount to around $85 million crowns.

SOURCE: Thomson Financial