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Respironics To Build New Manufacturing Facility for Production of Sleep Therapy
Devices; Expands Footprint in Westmoreland County
Posted 7-26-07
Respironics, Inc. (NASDAQ/NMS Symbol: RESP) today announced
plans to build a $32 million manufacturing facility focused on
the production of its sleep therapy devices. Situated on 56
acres at Westmoreland Business & Research Park, in Upper Burrell
Township, the new 165,000-square-foot facility will be located
approximately seven miles from the Company's Corporate
Headquarters and its current Sleep and Home Respiratory
manufacturing facility in Murrysville, Pennsylvania.
The need for a dedicated world class plant for
sleep therapy products is owed to sizable growth in the global
sleep market, estimated to be growing at 15% to 20%, coupled
with Respironics' widening portfolio of medical devices designed
to address market needs in the overall sleep and respiratory
markets globally. Since the current plant was constructed in
1990, Respironics has grown to a $1.2 billion company with a
presence in more than 131 countries. It operates manufacturing
sites in Pennsylvania, California, Georgia, Connecticut, Oregon
and abroad.
"This new facility will enable us to further the
development of our center of excellence manufacturing strategy
by focusing on products to support our Obstructive Sleep Apnea (OSA)
business, a core growth driver of the Company," said John L.
Miclot, President and Chief Executive Officer. "It also offers
us many other benefits including the potential for high volume
material logistics and production and optimization of process
efficiencies," Miclot added.
The Company pioneered sleep therapy with the
commercialization of continuous positive airway pressure (CPAP),
a proven treatment for OSA. The National Sleep Foundation
reports more than 18 million Americans suffer from this chronic
condition. An apneic event occurs when breathing is interrupted
during sleep, sometimes for as long as 10-30 seconds and as
often as 400 times a night.
Respironics will finalize plans for the new
facility over the next several months with completion expected
in approximately 14 to 16 months. The current manufacturing site
in Murrysville will be used as a multi-purpose facility and will
continue to produce certain devices including ventilation and
neonatal products used in the hospital and homecare markets.
The new manufacturing site is one of several
recent facility enhancements by Respironics to accommodate its
growing operations and workforce. The company currently employs
more than 1,700 associates in Western Pennsylvania and nearly
5,000 worldwide.
This new 165,000-square-foot facility will be
located in the fourth phase of development at the Westmoreland
Business & Research Park and can be expanded to
225,000-square-feet in the future. The 545-acre industrial park
is currently home to 18 companies employing more than 2,200
workers. Respironics' initial associate level at this facility
will be 575 with anticipated growth of 20% in five years.
"With today’s global economy and the competitive
nature of manufacturing, we recognize the need to have developed
industrial sites immediately available for expanding
businesses," said Westmoreland County Commissioner Chairman Tom
Balya. "We are very excited to assist Respironics with its
growth and facility expansion in Westmoreland County."
In 2007, Respironics marked the arrival of a new
state-of-the-art facility in the United Kingdom for its European
operations and Respiratory Drug Delivery (RDD) business and
established a Center for Excellence in Aerosol Research.
At its U.S. headquarters, Respironics expanded
the footprint of its main campus with three nearby properties.
It relocated its Sleep and Home Respiratory group to its new
headquarters on Rt. 286 in Monroeville and is putting the
finishing touches on a 30,000-square-foot call center in Plum
Borough. It also is developing new office space in Monroeville
for its Children’s Medical Ventures business, which provides
developmentally supportive products and services for premature
babies, healthy newborns and older hospitalized infants.
Respironics stated that it will not be changing
its financial guidance or outlook based on this announcement.
Respironics is a leading developer, manufacturer
and distributor of innovative products and programs that serve
the global sleep and respiratory markets. Focusing on emerging
market needs, the Company is committed to providing valued
solutions to help improve outcomes for patients, clinicians and
healthcare providers. Respironics markets its products in 131
countries and employs over 4,900 associates worldwide. Further
information can be found on the Company’s Web site:
www.respironics.com. |
