Perrigo to close two plants

The closure follows the US company’s acquisition of Agis. Since the takeover, Perrigo has been pursuing opportunities to integrate both businesses and streamline production.

The global healthcare supplier plans to shift profitable operations to plants in Allegan Michigan and The Bronx in New York, and cease production of its unprofitable lines such as psyllium-based laxatives and effervescent tablets.

The plants should close by the end of the year and Perrigo expects to incur a charge of about $8 million for the closures in the fourth quarter ending July 1, and another one-off cost of about $3 million in fiscal 2007.

The company said all employees from the closing Holland and Montague plants will be offered jobs at the Allegan plant.

“We are confident that a good number of our employees from these locations will take the transfers and remain with Perrigo,” said John Hendrickson, executive vice president and general manager of Perrigo Consumer Healthcare.