MORGANTOWN — The Mylan oral solid dose manufacturing facility in Morgantown is set to close July 31, with 1,500 jobs eliminated, according to parent company Viatris.
“Viatris intends to close down manufacturing operations at this facility by mid-2021. However, there will be no immediate employee reductions at the site,” Viatris said in a news release. “It is anticipated that the majority of production will continue for the next seven months, ending no later than July 31, 2021 and that the majority of employees impacted will remain employed until that time, when they will be offered comprehensive separation packages.”
This is part of a global restructuring initiative that the company anticipates will affect up to 20% of the global workforce in an effort to target “at least $1 billion in cost synergies to be achieved by the end of 2024 or sooner.”
The Chestnut Ridge facility is among 15 that Viatris will be closing, downsizing or divesting, the releases states.
In November, Mylan and Upjohn officially became Viatris.
Viatris chief financial officer Sanjeev Narula said, “Today’s announcement is a significant next step in ensuring Viatris meets the financial commitments it has made to shareholders and other key stakeholders. The company is currently in the process of defining the remaining parameters of this global restructuring initiative. We expect to continue to provide further details as they are finalized. At our Investor Day on March 1, 2021, we will review our roadmap on how we intend to deliver on our stated commitments, maximize value creation, and generate strong and accelerating free cash flows while positioning Viatris for a sustainable future.”
Monongalia County Commissioner Tom Bloom said the commission was “shocked and very concerned” about the announcement. He said the commission had no prior knowledge this news was coming.
“We heard about it like everyone else. We got some rumblings last night. We had individuals contacting us saying they had to close up and that they were going to be on a phone call today.” Bloom said, noting the timing of the announcement – during the holidays and the economic crunch of the ongoing pandemic – has a compounding effect.
“Our concern, obviously, is for the workers, their families. The rippling effect this will have on our community is hard to imagine,” he said, explaining that the commission plans to reach out to state and national elected officials regarding possible temporary assistance through the CARES Act or other sources.
“I’m trying to be positive. We are already reaching out to the community and business leaders – WVU Hospitals, Mon Health – to coordinate a plan of action to help these individuals, whether that be a career fair, whether that be other steps we can offer as far as getting businesses to come in here ,” Bloom said. “This commission does not rest on its laurels and we’re constantly looking for economic opportunities to diversify our local economy. Hopefully, we will rise from this stronger as a community.”
