X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BILLERICA, MA-SIPEX Corp. is closing most of its manufacturing facility at 22 Linnell Circle and relocating its headquarters from this site to 233 S. Hillview Dr. in Milipitas, CA.

A portion of the facility here will continue to operate as an engineering site, along with other administrative support functions. “As a result of the actions taken in the past few weeks, it was only logical to align the headquarters to where the executive management currently operates,” Walid Maghribi, president and CEO of SIPEX says.

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

Maghribi points out that, “With the previously announced exiting of the hybrid business, the Billerica test operation no longer made sense.” He adds that the closure was made to ensure the long term growth of the company. He expects, he says, that this action “will streamline our operations, reduce our lead-time to our customers and further reduce our cost structure.” The closure and relocation completes the basic restructuring of SIPEX, according to a released statement. However, Maghribi notes, “we will continue to evaluate our performance and take whatever actions are required to improve our financial results.”

The closure will affect 45 employees and will result in a restructuring charge in the current quarter consisting principally of severance costs related to the downsizing.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.