A portion of the facility here will continue to operate as anengineering site, along with other administrative supportfunctions. "As a result of the actions taken in the past few weeks,it was only logical to align the headquarters to where theexecutive management currently operates," Walid Maghribi, presidentand CEO of SIPEX says.

The company's backend activities will be transferred to itscurrent subcontractors in Malaysia. SIPEX, a semiconductor maker,says that the move will start immediately and will be completed bythe end of the current quarter. The company notes that it alreadyperforms all of its assembly and over 50% of its testing offshore.It will also transfer all of its equipment currently used in thisoperation to its subcontractors.

Maghribi points out that, "With the previously announced exitingof the hybrid business, the Billerica test operation no longer madesense." He adds that the closure was made to ensure the long termgrowth of the company. He expects, he says, that this action "willstreamline our operations, reduce our lead-time to our customersand further reduce our cost structure." The closure and relocationcompletes the basic restructuring of SIPEX, according to a releasedstatement. However, Maghribi notes, "we will continue to evaluateour performance and take whatever actions are required to improveour financial results."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.