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Cardinal Health consolidates facilities to simplify its business structure

Cardinal Health : 01 May, 2007  (New Product)
Two of Cardinal Health's largest business segments plus a range of the company's support functions are to be consolidated to its headquarters in Dublin, Ohio, USA.
The consolidation will result in the relocation of more than 700 positions from its McGaw Park campus in Waukegan, Illinois, USA.

To house its growing Central Ohio workforce, Cardinal Health plans to construct a new, 250,000ft2 facility adjacent to its current headquarters building on Emerald Parkway.

The plan will bring together core elements of its Dublin based pharmaceutical distribution business and its McGaw Park based medical/surgical supply distribution business to create a world class supply chain services organization that can share best practices and support functions to provide better services for customers.

Cardinal Health told employees and local officials on 2 April 2007 that it was assessing the potential benefits of relocating some McGaw Park operations to Ohio as a means to simplify its business structure.

The transition will occur during the next two years to help assure employees and customers are well informed and prepared for the change.

When complete, Cardinal Health's employment in Central Ohio will grow to approximately 3,400.

'Bringing these two similar businesses together into one location will result in a more streamlined organization and create more value for customers than either unit could accomplish alone', said R Kerry Clark, chief executive officer of Cardinal Health.

'State and local officials were instrumental in bringing more than 700 jobs to Dublin and providing the necessary support to expand our company headquarters'.

The expansion plans were made possible in part by project incentives from the state of Ohio and commitments made by the city of Dublin.

The new building will have capacity for 1,200 employees, including the relocated positions and employees currently in other office locations across Dublin.

'Ohio is a great state for business, and Cardinal Health is one of our best examples of a corporation that was born in the state and continues to grow its presence here', said Ohio Governor Ted Strickland.

'Cardinal Health is a significant partner in Ohio's growing health care industry and my administration is thrilled to help bring more than 700 new jobs to the state'.
'Successful projects like this continue to underscore our commitment to further enhancing the business climate in Ohio'.

City of Dublin Mayor Marilee Chinnici-Zuercher said, 'Dublin is proud to be the home of Ohio's largest company, and we want to help support Cardinal Health's continued growth in our community'.

'Dublin's favourable business climate and high quality of life make it an ideal place for large and small businesses alike'.

As part of the decision, the company said it expects to sell the McGaw Park property, but secure space in the area to house its offices, research and development labs, packaging centre and other local operations.

Businesses remaining in Northern Illinois include Cardinal Health's $2 billion Medical Products Manufacturing segment, a packaging centre that produces surgical kits, a major Midwest distribution centre and a range of customer sales, service and warehousing departments.

The company expects to incur $45 million in costs under a previously disclosed restructuring programme to cover employee relocation, severance benefits and other transitional expenses.
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