NJ Plant To Lose Merck Jobs In Company Reorganization

Rahway, NJ - Merck & Co. will eliminate about 250 jobs at its Rahway research and manufacturing plant by early 2007 as part of a sweeping reorganization announced earlier this week.

Merck will transform Rahway, its oldest plant, from a long-term manufacturer into what the company calls a "commercialization initiative," according to reports published Wednesday. The company did not immediately return calls for comment Wednesday morning.

Rather than making finished medicines, Rahway will make medicines only as part of late-stage product testing and in preparation for new product launches, according to The Star-Ledger of Newark and The Record of Bergen County. The pharmaceutical giant has said it wants to reduce the time it takes to bring drugs to market.

Merck officials this week began notifying workers at a manufacturing plant in Albany, Ga., and at another facility in Riverside, Pa. that the plants will be closed or sold. In addition, 235 jobs will be cut at Merck Frosst Canada Ltd., in the suburbs of Montreal by year's end. That is its only plant in Canada.

The Whitehouse Station-based company was expected Wednesday to announce other plants targeted for closure or reductions.

On Monday, Merck announced plans to close or sell five of its 31 manufacturing plants and reduce operations at others, laying off 7,000 people - about 11 percent of its work force - over three years. Those moves are meant to reduce costs by up to $4 billion by 2010.

SOURCE: AP