Merck KGaA Refines Life Science Network
As it optimizes efficiency at its Life Science (laboratory chemicals) business Germany’s Merck KGaA plans to close four of the filling and distribution facilities by 2022 with the loss of around 200 jobs. However, plans also call for about €90 million to be spent across four sites in Germany, Switzerland and France.
Under the changes announced on Jul. 12, the company will consolidate its manual filling and distribution activities of non-regulated laboratory chemicals from its German sites in Darmstadt, Steinheim and Hohenbrunn, and Buchs in Switzerland into a central distribution center in Schnelldorf, Germany.
The €90 million investment will be used to develop a manual filling capability and increase capacity in Schnelldorf as well as to further develop capabilities in Darmstadt, Buchs and Molsheim in France. Merck said its existing site in Hamburg, Germany, will continue to operate as before.
The operations in Steinheim, Eppelheim, Hohenbrunn and Berlin will then be relocated and closed sequentially starting in 2019 and through to 2022.
Udit Batra, member of Merck’s executive board and CEO, Life Science, said that centralizing the filling and distribution of small quantities will continue to enhance the group’s speed and responsiveness to customers’ requests. He added that this is an area that Sigma-Aldrich, which Merck acquired in November 2015, excelled in and positive results are already being seen from optimization efforts in North America.
Christos Ross, executive vice president of integrated supply chain operations at Merck Life Science, explained that the company has recently been updating its network at sites throughout the US, such as St. Louis and Massachusetts, as well as in Ireland (Cork) and in China and Japan. He commented: “By continuously optimizing our site network, Merck can better serve our customers and focus investments that develop capacity and capability most effectively and efficiently across our manufacturing and distribution operations.”
Since 2010, Merck’s Life Science business has consolidated 18 manufacturing sites to further simplify operations and establish centers of excellence.
