Development and Execution of a site closing plan including subsequent merger of entities for a pharmaceutical company
WCD: 100 Million €
WCD: 250
(now part of AbbVie)
Responsibility (Revenue/Employees):
- 250 Employees
- 100 Million €
Context:
- Development and Execution of a site shut down and closing plan, including sale of all tangible assets and subsequent closure of the entity.
- Ensure production until end of 2018 and additional product supply to support product transfes to other sites (Yearly product revenue approx. $500 million)
Actions:
- Shut down and closing plan developed by local management team, alignment with global leadership team achieved and plan approved and budgeted by the board.
- Shut down project set up, led by local management team
- Communication plan developed and executed with site organizsation, works council/union, authorities and media
- Innovative social plan agreed between management and works council/union
- Execution of shut down according to plan as well as implementation of measures to support transfer of employees to new companies
- Continuous alignment of actions via stake holder management with global functions (e.g. Corporate communications, global HR, global Facility Management)
- Site property and site equipment sold successfully
- Subsequent upstream merger of entity completed
Result:
- Shut down executed according to plan (in budget, in time, product supply ensured) while generating additonal savings of $7 million vs. budget
- Very good cooperation with global management, site organisation and works council/union during closing phase
- 98 % of employees stayed in the company until the targeted separation date, less than 1% court cases
- Runner up in the Allergan „Plant of the Year“ contest in the closing year (Competition between all 15 global manufacturing sites)
Special Challenges:
Over a period of 18 months between the shut down annoucement and the final closing, the site had to ensure market supply and realize additional preproduction to allow product transfers. This required a high level of employment and engagement until the last day, although eveybody knew that their employment would come to an end.