Abbott plans $500M formula plant

The baby powder shortage lasted months after Abbott Laboratories shuttered its main manufacturing site for the product, and the company is now planning a new $500 million facility, CBS News reported Oct. 21. 

"We're currently in the final stages of determining the site location and will work with regulators and other experts to ensure this facility is state-of-the-art and sets a new standard for infant formula production," Robert Ford, the company's chairman and CEO, told investors in an earnings call on Wednesday, according to CBS News

Abbott closed its Abbott, Mich., plant in February because of a contamination issue. The recalled batches spurred a nationwide shortage because the facility was the U.S.' main source of infant formula. The company resumed operations to normal levels in June, briefly closed a second time because a severe storm caused flooding and then it opened again later that month. 

The decision to invest in a new formula-manufacturing facility follows the release of a recent report that showed "this country would benefit from more manufacturing capacity and redundancy," Mr. Ford said.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars