Thursday, April 16, 2015

News: World's largest orthopedics contract manufacturer closing two plants

Tecomet | Solving Extreme Challenges with Precision Technology
Tecomet is slated to close plants in New Bedford, MA, and Avilla, IN, at a cost of more than 300 jobs, a regulatory filing shows. The move comes months after contract manufacturerSymmetry Medical was acquired by privately held Tecomet, in a move that created the world largest contract orthopedic manufacture, with a presence in 5 countries across the world. At the time of the deal,Tecomet said it had 18 facilities, but that number will soon be reduced to 16.

The company said both former Symmetry Medical facilities "struggled to make a profit." The 129 Indiana layoffs will occur in three waves, with the final cuts occurring on December 15, 2015, according to the filing. The Boston Globe reports that a separate filing with the Massachusetts state government indicates that 190 layoffs are planned in New Bedford.
Tecomet said the work will be transferred to its other manufacturing locations. One of them will be Warsaw, IN. Local outlet The Journal Gazette reports that the facility is being expanded in what's known as the orthopedics capital of the world.Biomet and Zimmer ($ZMH) are both based out of Warsaw, while Medtronic ($MDT) and Johnson & Johnson's ($JNJDePuy have facilities there as well.

In 2012, Tecomet acquired Teleflex's ($TFX) orthopedics manufacturing business for $45 million. The company's medical manufacturing ranges from artificial hips to cranial implants, artificial discs for the spine and components of cardiovascular implants. Tecomet also manufactures components for the aerospace and industrial applications.

Published at - Fiercemedicaldevices

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