Twinlab to restructure

- Last updated on GMT

Related tags: Sales, Cost, Twinlab

Twinlab, the US-based manufacturer and marketer of nutritional
supplements, has announced a major restructuring plan designed to
help improve its financial performance.

Twinlab, the US-based manufacturer and marketer of nutritional supplements, has announced a major restructuring plan designed to help improve its financial performance.

The restructuring, which is designed to reduce costs and better align the company's operational infrastructure to its sales volume, will result in the consolidation of Twinlab's New York manufacturing and distribution facilities into its modern FDA-registered facility located in American Fork, Utah.

However, the company's corporate offices and various purchasing, research and development operations will remain in New York.

The company said that while it would face charges of around $20 million relating to the restructuring, it would also generate cost savings of around $6 million a year from 2003. The restructuring is expected to be completed by the end of the year, with most of the exceptional costs coming in the third and fourth quarters.

Ross Blechman, Twinlab​'s chairman, president and CEO, said: "This restructuring activity represents the continuation of our commitment to examine all aspects of our operations to improve our financial performance. We believe that the consolidation of our manufacturing and distribution facilities will allow us to reduce our overall cost structure, enhance operational efficiencies and customer service and better position the company for future opportunities."

Earlier this year, Twinlab announced that it was looking to sell or close its Health Factors manufacturing facility in Tempe, Arizona, with a likely cost of $1 million.

Related topics: Suppliers

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