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Getinge AB Announces Restructuring Programs for Business Areas Infection Control and Extended Care


Friday, 8 Feb 2013 04:00am EST 

Getinge AB announced that it implements action program to improve business area Infection Control’s profitability. The program aims to improve business area’s EBITA margin within a three to five-year horizon. A key element of the program is concentrating business area’s production to fewer plants with greater resources, while also focusing manufacturing on assembly, which will result in component manufacturing being outsourced to external suppliers. The program will also include a review of distribution, logistics, administrative processes and the discontinuation of unprofitable product lines. The program is expected to cost approximately SEK 440 million over four years. Infection Control announced earlier relocation of sterilization manufacturing from Skarhamn in Sweden to China, and discontinuation of water-treatment products. Extended Care business area will continue to strengthen competitiveness. It aims to concentrate manufacturing to fewer units and to expand production to low-cost countries. The decision to discontinue the production unit, which was included in the acquisition of TSS, has been communicated and costs of the discontinuation will be financed by restructuring costs. The enhancement of the business area's efficiency will result in additional restructuring costs of SEK 240 million, which will be charged to the financial years 2013-2016. Getinge is acquiring Turkish company Trans Medical Devices Inc., which will be included in Infection Control business area. 

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25 Jul 2014