Ansell's global restructuring program was put in place in late June to create a more efficient and profitable business, company officials said.
Included in the plan is the eventual closure of Ansell's U.S. Hawkeye glove operation in Eupora, Miss. That decision was made because of decreased demand in the U.S. for the specialty gloves produced at the factory, principally for the U.S. military, a spokesman said.
Ansell—which is based in Iselin in the U.S. and Melbourne, Australia, globally—has not determined when the plant will close, he said.
Also included in the plan are relocation of the company's condom headquarters from Australia to Brussels; closure of a Malaysian medical goods production plant and moving capacity to lower cost facilities in southern Malaysia and Sri Lanka; and cutting 30 brands, 100 products and 20 legal entities.
The cutbacks will lead to the elimination of about 250 jobs in the next year.
In mid-August, when the company released its full fiscal year report, Magnus Nicolin, CEO and managing director, said Ansell's results “were underpinned by successful acquisitions and delivery against our innovation strategy with new product releases driving encouraging 4 percent organic growth in hand protection.”
He said the recent restructuring program “has created an opportunity to streamline parts of the business and improve our focus on the verticals where we see the greatest growth potential.”
The firm's most recent acquisitions—Midas Co. Ltd. in Korea and BarrierSafe Solutions International in the U.S.—are performing very well, he said, and give it new capabilities and access to markets where it only had a limited presence.
The restructuring program and the BSSI acquisition are expected to provide $10 million to $11 million in pre-tax benefits in fiscal 2015, the firm said.
A breakdown of Ansell's fiscal 2014 results show that its Industrial business, its largest, had sales growth of more than 10 percent with organic growth of 1 percent overall and 3 percent in its hand protection segment.