Elanco closing former ChemGen plant, moving production to the U.K.

Eli Lilly ($LLY) is consolidating all of its animal enzyme manufacturing operations to the U.K. A spokesperson for the Indianapolis-based company has announced that it will now close an Elanco plant in Terre Haute, IN, as part of the move across the pond.

The closure of the Elanco plant will happen by 2016 and will affect 23 employees, according to the Terre Haute Tribune Star. But Lilly spokesman Ed Sagebiel told the newspaper that the employees will be offered comparable jobs at another plant in Clinton, IN, where some 500 employees work for the drugmaker.

Lilly picked up the Terre Haute plant as part of its acquisition of ChemGen in 2012. It produces enzymes to help animals with the digestion of feed.

During the second quarter, Elanco provided a bright spot in an otherwise weak earnings report, with sales globally up more than 10%, while revenues across the entire company were up just 1%. And in a bit of news, the drugmaker said it was selling the feed additive business of Lohmann, the German animal health company it acquired in April.

The company is now focused on completing the acquisition of Novartis' ($NVS) animal health unit, it wrote in its second-quarter earnings report.

- here's more from the Tribune Star

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