Actavis is shutting a plant in Iceland, where its recently-acquired company Actavis has roots, and cutting 300 jobs in the process due to its $66 billion merger deal.
Allergan, which acquired Actavis in November 2014, is implementing a series of cost-cutting strategies as it looks to consolidate assets and staff between the two firms.
The newly-merged company has already begun a rebranding campaign, and now the firm has decided its 40 other plants – including a state of the art biosimilar manufacturing plant in Liverpool – can handle the production that is currently being done at its Iceland facility more cheaply.
The company will begin the 18 month phase-out in its manufacturing plant, which produces over 1.5 billion generic pills a year, with an extra six months for the plant to fully close.
The site in Hafnarfjordur was expanded in 2010 and is powered solely by geothermic energy. Drugs made at the manufacturing and packaging facility, which are mainly exported to Europe, will be transferred across Allergan’s network in the later part of 2016 and completed by mid-2017.
President of generic and global operations, Robert Stewart, commented in a statement that it is unknown whether or not if any of those laid off will be offered jobs in other parts of the company.
“We are committed to making this transformation as smooth as possible by announcing this decision significantly in advance and by implementing a comprehensive transition plan for eligible employees” Stewart went on to say. He added that Actavis will not be leaving Iceland as the firm will endure with its R&D regulatory and commercial businesses in the country.
Since the merger completed Allergan Chairman Paul Bisaro has cut redundant operations, and staff, to help pay for the aggressive buyout. The company began making employees redundant last year, including more than 300 employees at a packaging operation on Long Island.