Recently, according to The Irish Times, global medical device giant Gardiner has convened a meeting with all employees of its Tullamore factory in Ireland to announce its decision to close the Tullamore factory and cease production of a product.

With the closure of the factory, 315 job positions will be cut, and up to 300 employees will face layoffs. According to public information, the Tullamore factory has a total of 315 employees. The first batch of employees will resign in March and April 2025, and the second batch of employees will resign in April and May 2026.

Purchased for 43.4 billion yuan, net profit increased fivefold, still facing closure
The Tullamore factory was established in 1982 and has undergone several rotations over the decades. Originally established by American disposable medical product manufacturer Sherwood Medical, the Tullamore factory was acquired by Tyco Healthcare in 1998, which is now the predecessor of Covidien, a subsidiary of Medtronic and a global medical device leader.

In 2007, Tyco Healthcare spun off its healthcare business and established Koch Healthcare. After years of development, Koch Healthcare's business has spread to more than 100 countries around the world, and its development momentum is rapid. In January 2015, Koch Healthcare was acquired by Medtronic for $49.9 billion (€ 47 billion), and the Tullamore factory was also incorporated under Medtronic's umbrella.

Two years later, the Tullamore factory was once again relocated. In 2017, Medtronic sold 17 company facilities to Gardenor for $6.1 billion (approximately 43.4 billion RMB), and Tullamore factory was one of them. Looking back on the past, the Tullamore factory has also experienced the hands of multiple global medical device giants, witnessing the development of the medical device industry. However, today, the Tullamore factory is about to face closure.

Perhaps some readers may wonder if the closure of the Tullamore factory is due to its consistently declining performance. But that's not the case. According to the factory's accounts, it has been profitable every year for the past decade, with significant growth rates. From 2012 to last year, it announced a total pre tax profit of over 38 million euros. According to the latest financial report of the company, Tullamore factory's net profit has increased fivefold in the fiscal year ending June 2023.

Since it's profitable, why is it being shut down so badly? According to public information, employees of Gardeno in Tulamore were informed this week that the company will transfer two production line facilities from Ireland to Mexico and Costa Rica. So strictly speaking, this is not a complete shutdown of the business, only a transfer of supply chain and manufacturing.

Jiadeno stated, "This decision to close the factory is part of our regular evaluation of our global business, manufacturing, and supply chain operations, aimed at ensuring that we can meet the constantly changing needs of our customers, industries, and businesses

Regardless of whether the business is shut down or transferred, layoffs at the Irish factory are a foregone conclusion, with over 300 employees facing unemployment. Local Enterprise Minister Peter Burke stated that the factory has been a major employer in Tulamore and surrounding areas for over forty years, and this closure will have a significant impact on the factory's members, their families, the wider community, and the local economy.

According to informed sources, Tullamore factory employees will receive full layoff compensation, which is six weeks' salary for each service year, plus two weeks of statutory compensation.

Rapidly developing and listed on the Fortune Global 500 list
Jiadeno was founded in 1971 as a food distribution company. After years of development, it completely withdrew from the food business in 1988 and fully devoted itself to the pharmaceutical sales industry. Currently, it has become a global comprehensive medical service provider and product manufacturer, providing customized solutions for hospitals, medical systems, pharmacies, outpatient surgery centers, clinical laboratories, and various medical institutions around the world.

Jiadeno has a rich product pipeline, involving deep vein thrombosis, enteral nutrition, trauma treatment nursing, surgical treatment, electrocardiogram monitoring, etc. Headquartered in Dublin, Ohio, USA, Jiadno is one of the largest pharmaceutical distributors in the United States. In addition, Jiadno also produces medical and surgical products, including gloves, surgical gowns, and fluid control products. It is reported that in 2020, Jiadeno provided a large number of medical gloves to various parts of the world during the COVID-19 pandemic, thus becoming one of the world's largest suppliers of medical gloves.

In recent years, Jiadeno has also developed rapidly. According to the latest quarterly financial report, in the fiscal year 2024 ending on June 31 this year, Jiadeno achieved revenue of $226.8 billion, a year-on-year increase of 11%. The annual GAAP operating profit was $1.243 billion, a year-on-year increase of 65%.

Looking back at the business segments, Jiadeno's business mainly consists of two major departments: pharmaceuticals and medical products. Among them, pharmaceuticals are the company's main business, with an annual revenue of 210 billion US dollars, accounting for 93% of the total revenue; Profit of 2 billion US dollars, a year-on-year increase of 7%. The medical products department achieved a revenue of 12.4 billion US dollars, accounting for about 5%, but the profit declined significantly, with a profit of 92 million US dollars, a year-on-year decrease of 34%.

As the main business of Jia De Nuo, the pharmaceutical sector has not lived up to expectations and shouldered Jia De Nuo's revenue banner. Medical products are the icing on the cake, but this year's profits have encountered corresponding problems. Although medical products have a relatively small share in Jia De Nuo's sector and their layout is not as extensive as the pharmaceutical sector, it is worth Jia De Nuo's thinking on how to convert revenue into profits and truly add color to the icing on the cake.

In addition, it is worth mentioning that Jia De Nuo leads a group of equipment companies in the 2024 Fortune Global 500 list, ranking 27th and becoming the most profitable equipment company in 2024.

Conclusion
For workers in the pharmaceutical industry in 2024, the cold winter may continue. In 2024, many mechanical enterprises have carried out large-scale layoffs and factory closures. For example, American diabetes giant Tecan will cut 535 employees in its California headquarters; Fresenius laid off 309 employees in California; Thermo Fisher Scientific has laid off 74 employees in California. Nowadays, the Tullamore factory, which has gone through many twists and turns, is also about to shut down. More and more machinery companies are currently taking measures such as cost optimization and adjusting production layout to explore new profit points.

Link: https://news.yaozh.com/archive/44221.html
Source: Medical Device Business Review