Biotage is regrouping

The Swedish company Biotage takes yet another step in streamlining efforts, by outsourcing all instrument production to contract manufacturers.
The Swedish biotechnology company Biotage announced that the company has made the decision to transfer instrument production from its Charlottesville, VA factory in the US 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 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 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 US workforce will decrease by approximately 50 employees.
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