Steris (Mentor, Ohio), focused on infection prevention, decontamination and health science technologies, products and services, reported that the company is transferring the manufacturing portion of its Erie, Pennsylvania, operations to Mexico. The transfer is designed to occur in stages over the next 18 months.
The company said it anticipates pre-tax savings of about $20 million annually in the first full fiscal year after the transfer is completed, which is expected to be in the summer of 2007.
Steris manufactures sterilization equipment at the Erie facility for its Healthcare and Life Science business segments. About 450 employees at the facility are associated with manufacturing and close to 230 employees serve in a variety of business support functions. Steris expects to maintain its non-manufacturing presence in Erie following the transfer.
“The decision to transfer manufacturing activities from Erie to Mexico was a difficult one. However, the reality is that our core healthcare customers are under significant pressure to reduce costs and we are experiencing new global competition from lower-cost suppliers,” said Les Vinney, president and CEO. “The new facility will allow us the flexibility to better meet the needs of our customers, enhance our competitive position and provide future growth opportunities. We recognize the impact this will have on our employees and the community, and the company will work with the unions and employees to attempt to mitigate the impact of this action.”