West Consolidates Operations

West Pharmaceutical Services, Inc. will consolidate certain operations in an effort to improve operating efficiencies. The company expects to close its Montgomery, PA manufacturing facility and to downsize operations at its facility in St. Austell, Cornwall, U.K., resulting in the elimination of approximately 370 positions. West estimates that it will incur charges of between $18 million and $21 million as a result of the restructuring and expects to save approximately $6 million in 2011, and approximately $12 million beginning in 2013.

The Pennsylvania facility manufactures molded plastic components and assemblies for consumer-product applications. The Cornwall facility produces molded elastomeric components for disposable medical devices and elastomeric and plastic components used in pharmaceutical packaging.

“The changing landscapes in the healthcare and consumer markets we serve require that we regularly evaluate our operations and adapt to changing conditions in order to successfully compete,” said Donald E. Morel Jr., Ph.D., chairman and chief executive officer. “The plans announced today will reduce the manufacturing capacity devoted to product lines that no longer support sustainable, competitive operations, and will unfortunately result in the loss of a number of jobs over time. These are difficult decisions that fall most heavily on our employees in these locations, and we will be providing support that should ease the burden placed on them.”

Activity at the Montgomery plant will be transferred to other facilities, predominantly in the U.S., and will result in the loss of approximately 170 jobs beginning in January 2011 and continuing into 3Q11.

In Cornwall, a significant portion of the plant’s disposable medical device components manufacturing will end with the expiration of a client contract in late 2012. West will transfer the remaining production to its other plants in Europe, resulting in the elimination of 150 positions during the next two years. The facility will continue to fulfill customer requirements under existing contracts during the period. West is negotiating a transaction under which a third party would acquire a portion of the facility and supply West’s internal needs for certain pharmaceutical packaging components.

The restructuring of administrative, engineering and other operating positions will result in the loss of an additional 50 positions at other locations.