Gerresheimer AG, the Germany-based drug packaging company, said it is laying off 140 workers and shuttering its Millville, NJ, glass operation this summer.
The move is part of a companywide effort to consolidate its manufacturing operations in North America in response to declining customer accounts and a soft market, The Daily Journal reported. The plant let go of more than 100 workers earlier this year.
The business slowdown is likely connected to the FDA's crackdown on manufacturing plants. About 22% of Gerresheimer's sales come from the U.S. Though the company hasn't said which of its clients have been affected by the stronger regulatory enforcement, one of its customers is Hospira ($HSP), which has been a target of the FDA for several years.
"With deep regret we have to announce the shutting down of our Millville moulded glass plant," Norman Angel, a company spokesman, said in a press release. "We announce this difficult decision early in order to make the transition process as smooth as we can."
With the plant's closure, Gerresheimer will operate 6 molded glass plants globally. Its North American facility is located in Chicago. Other glass plants are in India, Germany and Belgium.
The company, which bought the plant in 1993 from Kimble Glass, has 40 plants and about 11,000 employees around the world. Its primary manufacturing is for glass and plastic products for the pharmaceutical and healthcare industries.
- see The Daily Journal story