Protective glove maker Ansell is set to shut three production facilities in Mexico and South Korea as it pushes to cut its annual expenses by $30 million by 2020.
The health and safety protection manufacturer, which sold its condoms business for US$345 million last year, said on Monday it would close two plants in Juarez, Mexico, and one in Janggye, South Korea, as part of its transformation program announced in July 2017.
Ansell said manufacturing activities would be consolidated in its facilities in Vietnam, Sri Lanka, Malaysia and Thailand.
‘With our streamlined manufacturing footprint at our best performing and most efficient sites, we expect to generate more than $20 million of annual cost savings, slightly above the plan announced in July 2017,’ said chief executive Magnus Nicolin.
The company’s transformation program is expected to achieve $30 million in savings by FY20.
Ansell’s 2017/18 full year net profit surged to $US484.3 million ($662.4 million) from $US147.7 million from a year earlier, bolstered by the US$345 million gain on the sale of its condoms business.
Ansell shares last traded at $22.81, down from a near three-year high of $29.11 in August.