AMRI Announces Review of its Hungary Operation
News Jan 24, 2012
AMRI has announced that as part of its ongoing global operations review to improve efficiency and customer service, it is considering a restructuring of its European operations focused on a reduction of the workforce in the second quarter of 2012 and potential further actions at its Budapest, Hungary operation.
As a result of shifting market preferences related to the preferred co-localization of integrated drug discovery activities, which have impacted demand for the Company’s service at this facility, AMRI is considering closing its operations in Hungary and transitioning many of the services offered at the site into other AMRI global locations, including Singapore and Hyderabad, India.
Current customer programs at AMRI Hungary may also benefit from this global integration. Any such restructuring could affect up to approximately 100 employees at the Budapest location.
The Company is commencing consultation with employee representatives to consider ways of avoiding or reducing the number of proposed redundancies, and mitigating the consequences of the redundancies.
The Company anticipates providing additional detail regarding these proposed actions in approximately one month or in conjunction with the Company’s year-end 2011 financial results.
The contemplated actions further demonstrate AMRI’s commitment to taking the necessary actions to reassess its global footprint and strengthen its core contract research and manufacturing business by focusing its resources to improve efficiency and respond to the demands of the marketplace.