Haemonetics (NYSE:HAE) said it plans to hire Sanmina Corp. (NSDQ:SANM) to take over manufacturing from its plant in Braintree, Mass., and will expand in Mexico and Asia.
A plant in Ascoli-Piceno, Italy, is also slated to be closed, with its production replaced by expanding Haemonetics existing operation in Tijuana. Haemonetics has said the moves will result in 320 job cuts but an addition of about 100 new R&D and engineering jobs.
Last month the blood management company announced plans to close up shop in the Bay State as it retooled its manufacturing operations. Yesterday the company offered more details on its 3-year plan, which will see it break ground on a new plant in Penang, Malaysia, and expand its existing footprint in Tijuana.
"The selection of Penang, Malaysia, for our own manufacturing site fits well with Sanmina’s capabilities there and brings our own production close to the emerging markets where much of our revenue growth is being generated. Consolidation of our whole-blood manufacturing in Tijuana and Covina will position us well for future growth," CEO Brian Concannon said in prepared remarks.
The moves in Malaysia and Mexico are expected to cost about $37 million, Haemonetics said. The entire retooling plan is expected to run between $60 million and $65 million and result in annual savings of $40 million-$45 million, according to a regulatory filing.
