500 jobs lost as MH plant plans to close

A high-tech production floor at Hospira, Inc., which will be

A longtime Morgan Hill company, the second largest private
employer in the city, is closing its doors, but they are swinging
shut very slowly, according to company officials.
A longtime Morgan Hill company, the second largest private employer in the city, is closing its doors, but they are swinging shut very slowly, according to company officials.

Hospira, a spinoff of Abbot Laboratories, was created in 2004 with about 14,000 employees. A hospital products manufacturer, the Morgan Hill facility produces electric delivery systems and infusion systems.

Before the spinoff, the division which created Hospira was in existence for more than 70 years.

Because the company has determined that it can continue activities less expensively at other locations or through contractors, it will gradually phase out the Morgan Hill plant, which employs about 600 people.

Company officials say an estimated 500 jobs will be lost during change, and the remaining 100 will stay in Morgan Hill. The transfers will take place over a two- to three-year period.

Morgan Hill’s Director of Business and Housing Services Garrett Toy said Wednesday morning that the city does not yet have enough information about the situation to determine what type of impact it will have on Morgan Hill.

“Obviously it will have an impact, we just don’t know exactly what at this point,” he said. “We need to talk to them, see what the available job skills are, determine if other businesses can use that skilled workforce.”

The company is based in Abbott Park, Ill. According to company officials, the building at 755 Jarvis Drive will likely be sold once the transfers are complete.

“We explored multiple options for the products manufactured at this facility and, ultimately, had to make this difficult decision,” said Joe Bellah, general manager, Global Electro Mechanical Devices, Hospira, and site manager for the Morgan Hill plant. “We hope that making this announcement with significant advance notice will assist all of our employees, and especially those directly affected by the news.”

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