DRAPER, Utah and POCATELLO, Idaho -- Kimberly-Clark Health Care announced today that it will be consolidating its North American manufacturing base and shifting production of medical devices from Draper, Utah and Pocatello, Idaho to its existing facilities in Mexico. Manufacturing will be phased out of Draper and Pocatello over the next two-to-three years.
Market and competitive pressures have forced all manufacturers to manage costs more efficiently, and Kimberly-Clark Health Care is no exception. We have come to the difficult but necessary conclusion that realigning our manufacturing operations will enable us to improve our operating efficiency and cost-competitiveness, said Joanne Bauer, president of Kimberly-Clark Health Care. We understand that these changes will have a significant impact on our employees at the affected facilities, and we will provide them with maximum support during this time of transition.Approximately 770 employees from Draper and Pocatello will be affected through workforce reduction or relocation to offices in suburban Atlanta or Tucson, Ariz. Kimberly-Clark is providing its employees with severance and benefit packages, as well as employee assistance programs and career counseling to help them in the transition to new opportunities.
Maximizing manufacturing capabilities within our existing facilities in Mexico is a logical business move for the company as we are faced with the realities of higher raw material costs combined with increased customer demand for lower prices, said Bauer. As such, we are forced to utilize our manufacturing footprint as efficiently as possible. Approximately 90 percent of Kimberly-Clark Health Cares employees currently live and work outside of the United States, and the company has maintained operations in Mexico for over 30 years. The move to consolidate manufacturing operations of its medical devices is the next step in a global business plan first announced in 2003 by its parent company, Kimberly-Clark Corporation. The plan is designed to accelerate the companys investments in targeted growth areas including healthcare, with emphasis on the continued development of preferred clinical solutions and higher margin devices and supplies, as well as aggressive global expansion in Europe, Asia and Latin America.
Source: Kimberly-Clark Health Care