HMR to close Puerto Rico plant by 1999

05 February 1998 21:48  [Source: ICIS news]

HOUSTON (CNI)--Hoechst Marion Roussel (HMR) will close its plant in Puerto Rico by year's end and offer the facility for sale as part of a strategy to reduce North American operations to three plants, the company said Thursday.

The move will eliminate 230 full time positions and save money despite the loss of special tax breaks for Puerto Rican operations, according to HMR spokesman Charles Rouse. But Rouse told CNI the company could not estimate a dollar figure for analysing the savings.

HMR will transfer all operations at the site in Manati, Puerto Rico to the home base in Kansas City, Missouri. Besides operations at the headquarters, HMR then will maintain plants in the US at Cincinnati, Ohio and in Canada at Laval, Quebec.

Rouse told CNI that proximity to pharmaceutical markets played a key role in determining which plant to close. But he emphasised that the company's success in streamlining its North American operations and increasing its production efficiency in Kansas City also served as factors.

"That plant in Puerto Rico served a valuable purpose but our main facility in Kansas City has greater efficiencies there," said Rouse.

HMR said it will offer severance benefits to full time workers losing jobs in Puerto Rico.

By: Gary Taylor
+1 713 525 2653

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