Biotage takes yet another step in streamlining efforts: Outsourcing of all instrument production to contract manufacturers

01-26-2009: Biotage has made the decision to transfer instrument production from its Charlottesville, VA factory in the U.S. to a contract manufacturer. Through this decision, the company takes yet another step to increase efficiency in business activities. Biotage expects this measure to enable substantial cost savings, a reduction in tied-up capital and increased flexibility.

Biotage currently has two internal production units. The majority of the consumables Biotage offers its customers are manufactured at the company's factory in Cardiff, Wales. The Charlottesville, VA factory manufactures instruments primarily within the Purification product segment as well as a small portion of consumables. The remaining part of its instrument production is outsourced to a subcontractor since previously.

"In recent years, we have pursued a successful undertaking to optimize our business activities. One important component of this effort is to streamline production. By moving production from Charlottesville, we achieve considerable efficiency gains and reduce susceptibility to changes in demand," says Torben Jörgensen, President and CEO of Biotage.

In conjunction with this relocation of instrument production, the Charlottesville consumables production will be moved to the Biotage factory in Cardiff, providing additional large-scale benefits. The transfer of production from Charlottesville will be implemented in stages and completion is estimated for the fourth quarter of 2009. This decision means that the factory will be closing and the company's U.S. workforce will decrease by approximately 50 employees.