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UPDATE 1-Martek says to cut jobs at Winchester facility
June 30, 2010 / 9:13 PM / 7 years ago

UPDATE 1-Martek says to cut jobs at Winchester facility

* To cut 45 jobs

* Sees cash charge of $1.5 mln in 2010

* To consider sale or lease of part of plant

* Sees non-cash charge or loss on sale of $30-$40 mln

June 30 (Reuters) - Martek Biosciences Corp MATK.O said it plans to cut 45 jobs at its Winchester, Kentucky manufacturing plant, and consider selling or leasing a part of it, to offset a portion of price reductions from infant formula contract extensions.

The company, which makes health and nutrition supplements, said it would take a cash charge of $1.5 million in 2010 related to the jobcuts.

Martek expects to transfer some manufacturing and distribution processes to its South Carolina plant.

The company, which would now shift focus to growing its non-infant formula business, expects to take a non-cash charge or a loss on sale between $30 million to $40 million in either the third or fourth quarter of fiscal 2010. Shares of the company, which have gained 27 percent in the last one month, closed at $23.71 Wednesday, on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Jarshad Kakkrakandy)

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