Tornier Restructuring to Save Up to $2.8M, Add MN Jobs
Tornier, Inc., on Friday announced plans to relocate its distribution operations from Texas to Minnesota-a move that will involve adding 50 to 60 jobs in the Twin Cities.
Tornier is an Amsterdam-based medical device company that has its U.S. headquarters in Edina. The company went public last year, raising $166 million through an initial public offering. It manufactures joint replacement, trauma, sports medicine, and other products for the medical industry.
The company said Friday that it will relocate its distribution operations from Stafford, Texas to the Twin Cities, bringing together its U.S.-based marketing, training, regulatory, clinical, supply chain, and corporate functions at a single site. Chief Financial Officer (CFO) Carmen Diersen said in a Monday e-mail to Twin Cities Business that the relocation will be completed this year, although the company hasn't yet determined where the operations will be located. The company currently employs 55 workers in Edina, who represent its entire Minnesota work force.
As part of its restructuring plan, Tornier will also consolidate some of its offices in St. Ismier, France and Dunmanway, Ireland with other nearby Tornier facilities.
Tornier expects to incur restructuring charges of between $6 million and $7 million, most of which the company will record this year. But it estimates that the restructuring will reduce annual operating expenses by $2.3 million to $2.8 million beginning in 2013.
“Our strategy of innovation has resulted in a rapid pace of new product releases,” President and CEO Douglas Kohrs said in a statement. “The facility consolidations will bring key components of our product delivery chain together, facilitating communications and enabling greater productivity as anticipated by our current operational plans.”
Diersen declined to comment on how the restructuring plans will affect its overall employee headcount, but the company said it will disclose additional details about its consolidation plans during a May 8 conference call.