AMRI looks to close API facility in Wales as part of network realignment

By Dan Stanton

- Last updated on GMT

The final decision to close the Holywell site will be made in March
The final decision to close the Holywell site will be made in March

Related tags Amri

AMRI has announced plans to close an API development and manufacturing plant in Wales, UK, after efforts to establish it as a conduit between the US and Europe were deemed unsuccessful.

In a note sent to its staff and customers today, the firm has announced it intends to shut the doors on the Holywell site, which has acted as an active pharmaceutical ingredients (API) chemical development and manufacturing services facility since AMRI acquired the plant from Excelsyn in 2010​.

“The original strategy for the Holywell site was to act as a conduit between Europe and the United States. However, the site has not been able to do this in a way that maximizes value for our customers and shareholders and is not aligned to the new strategic direction of the company.”

“Should any of your current projects require AMRI UK specific capabilities, we will keep you informed of developments and options as they arise,” ​the company informed its clients.

The news was confirmed by CEO William Marth during a conference call discussing end of year results, though Marth told investors the final decision on the plant - and the 64 employees who may be affected - will come at the end of March, once the firm has discussed options with current Holywell customers.

He added there could be a chance that the site would be sold rather than mothballed, though “the way the UK works is we have to announce our intention, then they will form a workers council and put a counter-proposal, and then we may accept what they offer or proceed with closure.”

Developing network

The intention to close the site comes as part of AMRI’s strategy to continually evaluate its manufacturing network.

“During the last couple of years, we have implemented a number of organisational and strategic initiatives, to better align our operations to strategically support your needs,”​ the firm said.

Since 2012, the firm has shuttered sites in Bothell​ (Washington), Hungary​, and - most recently – Albany​, New York. However, the network has been boosted by the recent acquisitions of Oso Biopharmaceuticals​, Cedarburg​ and two facilities from Aptuit​, including one in Glasgow, UK.

For its API contract business, the company announced revenues of $144m (€120m) for the full year, up 15% on 2013. Excluding the Cedarburg acquisition, contract revenue increased 7% year-on-year.

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