Greatbatch to Relocate Ortho Unit - Analyst Blog (Nasdaq Blog)
Medical technology company, Greatbatch Inc. recently proposed to relocate Greatbatch Medical's orthopedics manufacturing business from Orvin and Corgemont in Switzerland to the company's other facilities located at Tijuana, Mexico and Fort Wayne, Indiana. The company plans to complete the relocation by the end of 2013.
The proposal represents the company's intention to cut costs and improve efficiencies. The company's orthopedics segment's performance has been affected by the challenging market conditions. Greatbatch Medical's, Orthopedic sales plunged roughly 22% to $31 million due to the lack of product expansion and development initiatives in the first-quarter of fiscal 2012. Thus, in order to increase operating performance and propel growth, the company plans to consolidate this business.
Greatbatch's acquisition of Precimed in 2008 and the global recession that followed immediately thereafter affected the company's orthopedic business adversely. Since then the company has been facing problems related to product launches as well as pricing pressure from its customers. All these difficulties prompted management to ta...
