Greatbatch (NYSE:GB) said today that it’s planning to shuffle its manufacturing operation, moving some production from Minnesota, Oregon and Massachusetts to plants in Tijuana, Mexico.
The moves will see catheter and introducer production shift from a facility in Plymouth, Minn., to an existing plant in Tijuana, according to a regulatory filing. Portable medical devices made in Beaverton, Ore., and Raynham, Mass., will be moved to a new plant in Tijuana, Greatbatch said, with other non-portable devices made in Beaverton transferring production to the Raynham outpost.
The moves, expected to save $15 million to $17 million annually, will mean restructuring charges of between $17 million and $22 million, the Frisco, Texas-based company said.
The charges will include 1-time severance and termination benefits ranging from $6 million to $8 million, plus write-downs of about $1.5 million to $2 million, according to the filing. Another $9.5 million to $12 million worth of relocation, disposal and restructuring charges will also hit the books, Greatbatch said.
Greatbatch representatives did not immediately respond to requests for comment.