Johnson & Johnson to Close Scotland Plant
US healthcare giant Johnson & Johnson (J&J) has announced plans to close its surgical suture manufacturing plant in Livingston, Scotland, with the potential loss of 400 jobs, according to local news reports. The company has launched a consultation process with employees of its Ethicon subsidiary, which operates the West Lothian site. The move is part of a global restructuring program announced in January 2016 and designed to accelerate the pace of innovation, further prioritize key platforms and geographies and streamline operations.
“We have put forth these proposals in the interest of reducing complexity and increasing agility to better serve the needs of customers and patients in today's evolving healthcare marketplace,” J&J said. If the closure goes ahead, production will shift to larger sites in the US (Texas), Brazil and Mexico.
Both the UK and Scottish governments are said to be working with the US conglomerate to try to secure the site’s future. Scotland’s Economy Secretary Keith Brown said ministers had engaged with J&J to explore every possible support for the business, but despite their efforts the company had decided to enter into consultation on possible site closure, a move he called “hugely disappointing.” Our focus now is on working with J&J to try to find a new owner for the site,” Brown said.
In January, J&J announced plans to cut 80 jobs at its LifeScan Scotland subsidiary in Inverness, which develops and manufactures products to treat diabetes. It is said to be still considering a number of strategic options for the business, including a possible sale or partnership with another company.
