By reorienting its businesses towards sustainable growth in other business units, Terumo wants to ensure a long-term future of the Company in Europe. The medical devices industry in which Terumo Europe operates is experiencing significantly changing market dynamics such as health care reforms, price pressure, increased production costs and rise of low cost country competitors. To adapt to these new market dynamics Terumo decided to revise its strategy with the objective of leading the company to a sustainable healthy future.
Terumo Europe intends to transition its activities of production and sales in the Hospital & Laboratory business. If the intended plan would be implemented, 260 employees could be impacted in Europe by March 2016, (on a total of approximately 1,200 today). This includes 210 employees in Belgium (on a total of approximately 770 today). The company is committed to abide by all legal regulations and has started the information and consultation process with employee representatives, as foreseen by the law on collective dismissals.
As part of the intended changes Terumo Europe will continue to focus on and invest in further growth in the business units Interventional Systems and Global Pharmaceutical Solutions. In addition the Company will proceed with its Cardio Vascular business unit and prepare future growth.
Commenting on the plans, Kyo Nishikawa, Managing Director of Terumo Europe, said, "Because of the changing market dynamics in the medical devices industry we reviewed our business portfolio to capture full growth potential for Terumo Europe and lead our organization to a long term sustainable future in Europe. This has led to our intention to transition our Hospital & Laboratory business. We are fully aware of the social and emotional impact these potential measures could have on our employees. We will engage in a constructive dialogue with our employee representatives, in order to investigate all possible measures to avoid as much as possible compulsory redundancies. We will treat our potentially impacted employees with fairness, dignity and respect."