Viatris to shutter its Mylan manufacturing plant in Caguas
Viatris Inc. — the new company product of the merger between Mylan and Pfizer’s Upjohn manufacturing operations — announced the closure of its plant in Caguas that will happen in phases through December 2022.
Some 600 employees will be affected by the corporate decision to eliminate the solid dose manufacturing facility that still carries the Mylan name in Caguas.
The restructuring initiative is part of Viatris’ previously announced roadmap “to maximize long-term value creation and is intended to ensure the new company is optimally structured to sustainably achieve its bold mission while also delivering on its financial commitments.”
Viatris said in a statement that, “wherever feasible it will seek to find potential buyers for its facilities to preserve as many jobs as possible and will work with impacted communities to identify appropriate potential alternatives.”
In a written statement, Department of Economic Development and Commerce Executive Director Manuel Laboy said, “committed to offering assistance in the transition process of workers, the [Puerto Rico] Labor Development’s Unit for Displaced Workers and Employers, will offer its support services and search for new job opportunities.”
“Puerto Rico is recognized for having an excellent workforce and we know that they will be able to contribute their knowledge to other companies established on the island or soon to arrive,” Laboy said.
Viatris’ initiative is intended to reduce the company’s cost base by at least $1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years, it stated.
The company’s plans are to continue evaluating its global manufacturing and supply chain network by either closing, downsizing or divesting up to 15 facilities, it added in a press release.
During this first round of closures, Viatris will also close plants West Virginia, Ireland and India.
The combination of Mylan and Upjohn was announced on July 29, 2019 and received the final regulatory clearance on Oct. 30, 2020.