Sun Pharma closes Detroit facility to consolidate US operations

Sun Pharmaceutical Industries Ltd on Friday announced its decision to cease manufacturing operations and close the Detroit facility, as a part of its manufacturing consolidation in the US.

The company said it has notified the Workforce Development Agency for the State of Michigan regarding its decision to close the Detroit facility operated by Caraco Pharmaceutical Laboratories, Ltd, located at Elijah McCoy Detroit, Michigan, USA.

"We have turned around the Detroit unit post the consent decree. It was brought back into operation since 2012. The current decision to close the unit is in line with our strategy to consolidate our manufacturing operations in the US," it added.

Sun Pharma said it has provided the requisite advance written notice of the facility closure to the employee union and all affected employees and that it has ensured that the impacted employees get compensated with more than their regular entitlement under the severance package.

They will also receive other support services including outplacement assistance.

About 123 employees will get directly affected by the decision to close down the Detroit unit, it said. The rest of the employees are continuing through mutually consented arrangements, it added.

Sun Pharama said it has transferred the manufacturing of the products being manufactured at the facility to other units in order to ensure business continuity and that all necessary steps have been taken to avoid market shortage.

Sun Pharma said it expects only a negligible impact of this development on its FY15 consolidated revenues.

Sun Pharma recently signed a $3.2-billion deal to buy generic drug maker Ranbaxy Laboratories, which is awaiting regulatory approval.