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news.Synergetics USA has announced that it will close its Philadelphia plant and merge the operations and production of generator products into its plant in O'Fallon Missouri.
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The move is part of the company’s overall strategy to continue improving product and component integration and increase operational efficiencies at all levels of the organization. The Philadelphia plant currently has 25 employees and the company expects to record non-recurring, pre-tax severance and related costs associated with this action of approximately $400,000, with the majority of these being cash costs.
Ongoing annual cost savings from the closing are expected to be approximately $1.5 million, or $0.05 per share. Jerry Malis will remain as chief scientific officer and will lead five engineers and technicians in the further development of Malis generators and provide technical continuity.
Gregg Scheller, president and CEO of Synergetics, said: “In addition to overall cost savings, we expect that the consolidation of production engineering and manufacturing under one roof will ultimately result in substantial improvements in product development and market response time, a key differentiator for us in the competitive landscape.”