Medical device company Baxter Canada will close its Sherbrooke, Que., plant on Dec. 9, putting 135 people out of work.
The company plans to relocate production to other plants in the United States, Costa Rica and Singapore that are already making its products.
The Sherbrooke plant made medical devices for intravenous interventions.
Jana Machan, a company spokeswoman, said Wednesday the firm is closing the plant so it can remain competitive globally.
She says the company is keen to meet increasing demand for the intravenous devices.
"In the other foreign factories, we have the means to produce the same products and increase production without additional investments," Machan said.
Sherbrooke Mayor Bernard Sevigny said the city was stunned by the news.
"It came as a shock," he said. "We didn't have any warning."
Sevigny said dealing with multinational companies that have their head offices elsewhere can be a problem for cities. He added that the problem is occurring less and less in Sherbrooke — because the city is home to fewer and fewer multinationals.
He said when local companies are faced with problems they usually try and work with the city to resolve them.
The Baxter plant is a high-tech facility where products are made in a sterile environment. It plans to sell the plant, giving the mayor hope that someone else may move in.
Baxter Canada celebrated the 25th anniversary of the Sherbrooke plant in 2008.
It says its other Canadian plants, located in Alliston and Mississauga, Ont., are not affected and it still intends to move its new headquarters to Mississauga in September.
Source: http://www.winnipegfreepress.com
The company plans to relocate production to other plants in the United States, Costa Rica and Singapore that are already making its products.
The Sherbrooke plant made medical devices for intravenous interventions.
Jana Machan, a company spokeswoman, said Wednesday the firm is closing the plant so it can remain competitive globally.
She says the company is keen to meet increasing demand for the intravenous devices.
"In the other foreign factories, we have the means to produce the same products and increase production without additional investments," Machan said.
Sherbrooke Mayor Bernard Sevigny said the city was stunned by the news.
"It came as a shock," he said. "We didn't have any warning."
Sevigny said dealing with multinational companies that have their head offices elsewhere can be a problem for cities. He added that the problem is occurring less and less in Sherbrooke — because the city is home to fewer and fewer multinationals.
He said when local companies are faced with problems they usually try and work with the city to resolve them.
The Baxter plant is a high-tech facility where products are made in a sterile environment. It plans to sell the plant, giving the mayor hope that someone else may move in.
Baxter Canada celebrated the 25th anniversary of the Sherbrooke plant in 2008.
It says its other Canadian plants, located in Alliston and Mississauga, Ont., are not affected and it still intends to move its new headquarters to Mississauga in September.
Source: http://www.winnipegfreepress.com
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