Evonik swings axe at API plant
pharmafile | December 18, 2012 | News story | Manufacturing and Production |Â Â API, Evonik, cuts, lillyÂ
Fine chemicals company Evonik Degussa has announced job cuts as part of an efficiency drive at a US plant making active pharmaceutical ingredients.
The Germany-headquartered manufacturer of speciality chemicals and ingredients plans to reduce its workforce at Evonik Tippecanoe Laboratories in Lafayette, Indiana, by 45 positions.
Evonik bought Tippecanoe Labs at the beginning of 2010 from former owner Eli Lilly, saving the plant from closure and preserving the jobs of more than 650 employees by negotiating a nine-year supply agreement for Lilly products.
It is currently the chemical company’s second-largest site in the US, specialising in bulk API and intermediate manufacturing for products such as Lilly’s Gemzar (gemcitabine) cancer drug and Prozac (fluoxetine) antidepressant, as well as veterinary drugs.
Now, Tippecanoe is facing cutbacks as part of a broader push across Evonik’s healthcare manufacturing sites that is designed to improve the flexibility of the business and increase competitiveness. At present the impact of this drive on other facilities has not been disclosed.
“The transformation of our Lafayette facility is necessary in today’s marketplace and it in no way reflects on the performance of the outstanding Tippecanoe Laboratories team,” commented Keith Baumann, director of human Resources at the US site.
“To successfully meet global challenges, we must continually improve the way we work and manufacture … APIs”, he added.
Employees at Tippecanoe Laboratories impacted will be provided with a severance package, and given assistance in finding new employment, said Evonik.
Jean-Luc Herbeaux, senior vice president and head of Evonik’s healthcare business, said: “We are focused on being a leading contract manufacturing organisation for the pharmaceutical industry and we are changing our operational model to further strengthen our position.”
Phil Taylor
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