Covidien plans to slash 183 jobs in NY plant closure

Covidien ($COV) is planning to shut down its Argyle, NY, plant in 2014, doing away with 183 jobs in its catheter business.

The company had talked up the closure as far back as 2011, The Albany Business Review reports, but finally set a date in documents filed with the New York Department of Labor. Covidien plans to shutter the facility on June 30, 2014, and the Review notes that the company has been shedding jobs at the plant since early January.

In 2011, Covidien told the Times Union it would shift the Argyle site's output to facilities in Mexico and Costa Rica, but it's unclear whether that's still the plan. A company spokesman didn't immediately respond to a request for comment Tuesday.

Back in September, Covidien announced its plans to gradually shut down a South Carolina vascular plant, laying off 600 employees over three years as it transitions to more Costa Rican manufacturing. That move was designed "to improve operating efficiency" across the company and make sure it "is well-placed for strategic growth," a spokesman said.

The closure is a blow to Argyle's "Catheter Valley," the Review reports, a hub for device manufacturing that is home to plants operated by AngioDynamics ($ANGO), Delcath ($DCTH) and C.R. Bard ($BCR).

While Covidien is scaling back its U.S. manufacturing footprint, the company is planning to up its R&D spending, CEO José Almeida said last quarter, betting on drug-coated balloons for peripheral artery disease and renal denervation treatment. The device giant is planning to excise Mallinckrodt, its drug business, some time this year, and Covidien is projecting 2013 revenue to grow between 5% and 8%.

- read the Review story
- check out Covidien's filing

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