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.