Teva Pharmaceuticals Moves Its Montgomery County HQ to New Jersey | Business

Montgomery Twp. New Jersey Governor Phil Murphy threw a bomb in Montgomery County on July 5, announcing that his state had attracted a major pharmaceutical company.

Teva Pharmaceuticals USA has accepted a NJ incentive program totaling nearly $ 40 million. years to move its headquarters from Montgomery Township. The move will include the transfer of more than 800 jobs to Parsippany, N.J., according to the governor's office.

Teva's current headquarters at 1090 Horsham Road is one of three facilities in the company. The other two are near West Chester and Frazer.

Israel-based Teva Pharmaceutical Industries Ltd. is the largest generic manufacturer in the world. The company is in full restructuring announced in December 2017. A key element of the plan, according to a statement released by the company on July 6, was the decision to close or dispose of a significant number of facilities, the headquarters "

" The reduction in the number of sites supports Teva's desire to unify and simplify the organization, to ensure better integration, to improve productivity and to improve the organization. efficiency and reduce its cost base. This includes the consolidation of the Teva sites, "the statement said. The restructuring will also result in the termination of approximately 14,000 employees worldwide.

Teva plans to maintain a "significant" presence in Pennsylvania, the statement said. While many jobs will be moving to New Jersey, Teva's plan over the next two years "keeps jobs for about 600 life sciences employees" at Teva's R & D plant in West Chester . An additional 100 employees will continue to support Teva's operations and distribution services in northeastern Pennsylvania.

"As the restructuring process, market dynamics and natural attrition are ongoing; The package proposed to Teva and approved by the New Jersey Economic Development Authority includes a grant from the Grow New Jersey Assistance Program estimated at just under $ 4 million a year for 10 years.

The Pennsylvania Department of Economic and Community Development has not made an offer to Teva for this project, according to a statement released on July 6 by the office, citing the ongoing restructuring of the project. ;business.

"Teva's consolidation plan is aimed at jobs and disposing of several facilities in order to alleviate financial difficulties.The financing of this project does not correspond to the basic principles of the economic development of Teva. judicious use of taxpayers' money with strong accountability measures to foster real job growth in Pennsylvania, says Montgomery's director, Lawrence Gregan, in an interview in July. that the township was aware of the restructuring of the company, but was unaware of the "magnitude of the move out of the region." However, he added that the company would continue to use the township for some of its activities. [19659002] "They maintain the facility and have applied for a permit to convert it into a warehouse. We therefore expect that they will continue to be present on the site, "said Gregan, adding that the permit was submitted last week and that it is under review. by the cantonal code department Gregan did not know all the details of the application

"We do not want to lose businesses in the community, but the fact that they retain some presence is somewhat comforting Although some of the details about the impact of Teva's employees are not yet known, Montgomery County Trade Director David Zellers said the county has services to help the affected workers. [19659002] "We understand the vulnerability of workers when businesses decide to relocate.That's why we have invested with the government in workforce development services like our Montgomery County Careerlink PA ry, which provides job search badistance services to Montgomery County residents. Zellers added that the county remains, "number one in Pennsylvania for manufacturing jobs and our region is the focal point for the pharmaceutical and life sciences industry in the Commonwealth."

Announcing the restructuring in December, Managing Director Kare Schultz said that it was crucial to restore the com "We have no time to lose," he said at the time

. The company said the planned 14,000 layoffs represent more than 25 percent of the global workforce. The restructuring is expected to reduce costs by $ 3 billion by the end of 2019.

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