Update

Hospira to lay off 100 following closure of Clayton, NC plant

By Zachary Brennan

- Last updated on GMT

Related tags North carolina

Hospira to lay off 100 following closure of Clayton, NC plant
Hospira’s closure of its manufacturing facility in Clayton, North Carolina, which it says is a cost rather than a quality issue, will result in the laying off of 100 employees, according to a WARN notice posted Wednesday.

But those employees won’t be left without any compensation. The company, which recently announced an agreement to be acquired by Pfizer for $17bn​, has set aside about $15m in cash for employee-related costs associated with the site’s closure, including costs for severance, retention, and other employee related assistance and other exit costs associated with the plan, according to a recent SEC filing.

The Clayton plant made generic acute injectable drugs for intravenous use and also offered certain contract manufacturing services.

Background

In January, Hospira announced its plan to close the plant by June of this year, which will include the discontinuation or transfer of the products manufactured at the site to other Hospira locations or third parties.

Hospira estimates that this activity will result in total charges of about $45m, which includes approximately $8m in other non-cash costs, including accelerated depreciation of plant assets.

Back in 2010, the site was hit with an FDA warning letter​for various cGMP violations. Hospira spokeswoman Tareta Adams told us that on April 16, the FDA "notified Hospira that it has closed out the 2010 warning letter for Rocky Mount and Clayton, and has completed its evaluation of the company’s corrective actions in response to the letter​." 

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