Strides Arcolab discontinues manufacturing operations in New Jersey
09 Jan 2008
Strides Arcolab Ltd has announced the closure of its loss making manufacturing operation for OTC and nutraceuticals for soft gelatin products in the US (conducted through its subsidiary, Strides Inc.).
The company says that the changing regulatory framework in the US for OTC and nutraceutical products does not make the plant viable anymore. The facility incurred an operating loss of approximately Rs28 crore in the financial year 2007.
In a media communiqué, Strides Arcolab said, "The company continues to engage with interested parties on the disposal of the asset but the ceasing of the manufacturing operations will ensure the immediate reduction of losses in its operations in the USA".
"The soft gelatin business continues to be attractive for Strides Arcolab and its Indian plant is fully geared to meet enhanced demand that will be relocated to India," it added.
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