WILSON – Drug giant Novartis says it will close a plant in Wilson that employs more than 200 people, but it’s not part of a global cost-cutting strategy. The closing decision was made “long before” a recent restructuring began, a spokesperson for the company says. However, news of the shutdown only recently emerged.
In fact, the company says it recently decided to keep the plant open into 2023 rather than close this year.
“We will continue to look for divestment opportunities prior to discontinuing operations, but for now we are focused keeping the site running and retaining our skilled teams to continue with business as usual until transfers [of products] are completed,” the spokesperson said.
The company is planning to cut some 8,000 workers over time as part of the strategic review, according to media reports.
“To begin and to be clear, the process to review the Wilson site and the decision to close the site had been initiated long before the announcement of the Strategic Review, and regardless of any strategic review outcome. It is the nature of the generics business to constantly look for opportunities to become more efficient,” the Novartis spokesperson told WRAL News.
“To remain cost-competitive, it is important to use our sites to full production capacity. In the case of the Wilson site, we have been trying for a while to bring in more volume but despite all our efforts, not enough options have materialized. Plans to close the Wilson site will allow our manufacturing network to respond to current market pressures while focusing our investments on our strategic portfolio choices to set Sandoz up for growth and make our manufacturing network more efficient.”
Novartis uses the plant to manufacture what it calls Oral Solid Dosage, or OSD, products.
“The site will not close immediately, which means that the closure is anticipated around the end of 2023 (previously it was 2022, but we have recently extended it to ensure product transfers are complete),” the spokesperson said via email. “Planning for a phased closure for product transfers will allow for continued supply of our generics medicines which are currently produced at Wilson. We have put in place an effective transition plan to ensure smooth product transfers, and it will be important to keep the site running and retain our skilled teams to continue with business as usual until transfers are completed.”
The shutdown will also affect Novartis employees not directly involved in the manufacturing operations, the spokesperson explained.
“When the site closes, associates who work out any ancillary office space would also be a part of this closure and are included in the total number we already provided who work for the site. Associates have been notified and are well informed of the timing and process moving forward. Associates won’t be transferred with product transfers and have been given notice of this, too. Unless there is a late sale of the site and we have a buyer who is interested in the staff for the site will associates be retained.”
