Welch Allyn Will Reshape Its European Footprint to Prepare for Further Global Growth

2012-12-10

Welch Allyn Will Reshape Its European Footprint to Prepare for Further Global Growth

Company will establish new Europe/Middle East headquarters, transfer German manufacturing as part of Global Restructuring Program announced in September

Skaneateles Falls, NY, USA, December 10, 2012— Welch Allyn, Welch Allyn, a leading global provider of medical diagnostic solutions, today announced it will reshape its European footprint over the next two years in order to  position the company for further growth in the Europe and Middle East (EME) region.  In doing so, the company has identified the vicinity of Amsterdam, the Netherlands as the ideal location for a new EME headquarters.  The company will also create an Operations Center in the Netherlands region that will enhance supply chain functions by co-locating logistics infrastructure, product configuration, bench repair, and frontline technical services phone support.

"Our analysis confirmed that placing a headquarters facility in the Amsterdam area affords us numerous benefits," said Steve Meyer, president and CEO at Welch Allyn.  "The Netherlands has established itself as a leading site for European headquarters for many U.S. companies.  As a pro-business country, the Netherlands offers a climate to successfully compete in Europe. It provides a supportive corporate tax structure, complemented by excellent physical and telecommunications resources. It is also a location that provides a world-class international transportation infrastructure allowing direct access to a Welch Allyn headquarters by road, rail and air."

Furthermore, the company will transfer manufacturing operations from Welch Allyn GmbH & Co. KG in Jungingen, Germany to its existing facility in Tijuana, Mexico.  This transition will result in cost savings while also providing supply chain benefits due to Tijuana's location and proximity to the major markets for Welch Allyn blood pressure aneroids which are currently manufactured in Jungingen and Tijuana, Mexico. Transition of manufacturing operations in Jungingen will commence as early as October, 2013 with intentions for completion within the following 6 to 12 months.  The Jungingen team will be closely engaged in developing detailed plans to ensure minimal risk to customers and remain respectful to employees during this transition.  The company's plans regarding Welch Allyn GmbH & Co. KG are subject to and under the condition of concluding a corresponding reconciliation of interests and a social plan with Welch Allyn GmbH & Co. KG's works council.

"These actions are a continuation of the global restructuring program we announced in September. At that time we announced we would conduct a rigorous 90-day evaluation of our EME business deployment," said Meyer.  "We need to realign our resources in the region in order to meet the challenges and opportunities of a rapidly changing global healthcare environment.  We firmly believe that achieving the full potential of this restructuring program, including European realignment, will help position us for long term success at each of our global facilities. Restructuring our global business is necessary in order for us to achieve optimal staffing levels while we work with our customers to help them solve their most pressing problems," added Meyer.

The company will continue to operate its Navan, Ireland facility, moving some functions to the new headquarters over the next two years and optimizing other roles in Navan based on Welch Allyn's corporate strategy and business conditions.

About Welch Allyn
Welch Allyn is a leading global healthcare company that offers a complete range of digital and connected diagnostic solutions that help reduce risk and enhance workflow in a variety of clinical settings. Founded in 1915 and headquartered in Skaneateles Falls, NY (USA), Welch Allyn is a family-owned business that employs nearly 2,700 employees in 26 different countries. The company specializes in helping doctors, nurses and other frontline practitioners across the globe enhance care by developing innovative products, breakthrough technologies and cutting-edge solutions that improve patient outcomes, safety and satisfaction. More information about Welch Allyn and its complete line of connected products and solutions may be found at www.welchallyn.com. Like us on Facebook and follow us on Twitter.