LONDON (Oct. 4, 2007) — SSL International P.L.C. plans to close a Durex condom factory in Rubi, Spain, and a technical center in Cambridge, England, during the first quarter of next year.
The company plans to transfer production to existing facilities in Thailand and India as part of a "rationalization of manufacturing capacity."
According to a company statement, SSL has begun negotiations with its employees, a process that is expected to take about three months. The closure is subject to authorization from the Spanish Employment Authorities.
The proposed transfers will not happen before March 2008, the company said. It believes that by co-locating technical service activities at its principal manufacturing sites it will be able to market its products and innovations at a faster speed.
SSL anticipates that as the result of these plans a one-time cost will be incurred in the current fiscal year. The closures are expected to improve operating margins beginning in the next fiscal year.