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Consolidating manufacturing plants

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J., company about .5 billion a year starting in 2012.

Merck said Thursday the restructuring plans announced so far will bring savings of about .7 billion to .1 billion in 2012, most of its target.

Citing a need to “counter growing price pressure,” solar inverter company SMA Solar Technology AG has announced it is shutting down two production facilities in an effort to consolidate its global operations.

The company says this will allow SMA to further reduce its fixed costs and, thus, maintain its competitiveness.

The schedule and routing requirements were based on the needs of the manufacturing plants and production capabilities of the suppliers.

We created a system of "milk runs," in which product is consolidated from multiple vendors at our distribution centers and delivered in bulk on a weekly basis to the client's manufacturing plants.

Still, the company has said it will eliminate about 15 percent of the combined work force, or roughly 16,000 jobs.

It expects to take a charge for some of that cost in the second quarter.Network breakdown According to an SEC filing , as of the end of 2014 Novartis’s manufacturing network comprised of five bulk chemical and 14 pharmaceutical production facilities plus one biotechnology site in Huningue, France.“Major bulk chemical sites are located in Schweizerhalle, Switzerland; Grimsby, UK; Ringaskiddy, Ireland and Changshu, China,” the filing reveals, while “significant pharmaceutical production facilities are located in Stein, Switzerland; Wehr, Germany; Singapore; Torre, Italy; Barbera, Spain; Suffern, New York; Sasayama, Japan and in various other locations.”On top of this the firm has primary OTC plants located in Lincoln, Nebraska; Nyon, Switzerland; Humacao, Puerto Rico; and Jamshoro, Pakistan, while its generics division, Sandoz, consist of 45 manufacturing sites across 19 countries.There are also nine facilities producing pharmaceutical products for the firm’s eye care business Alcon, and a further 12 making surgical equipment and other surgical medical devices.In 2014, the Suffern, New York facility that made one-time bestseller blood pressure drug Diovan (valsartan) announced it was closing its doors last year, as did a consumer health facility in Lincoln, Nebraska , and a pharma manufacturing site in Taboão da Serra, Brazil.Impairment charges and inventory write-offs in relation to the network reduction programme stood at 3m for 2014, bringing the total to 8m in exceptional costs since 2010.“Novartis currently has roughly 100 manufacturing sites across its divisions – following the closure of the transactions with GSK, expected in first half of 2015,” Althoff told us.“There are many Functions and Domains that are common across Divisions.