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In Brief: Alaris Medical

This article was originally published in The Gray Sheet

Executive Summary

Alaris Medical: San Diego-based infusion products firm says it is "proceeding with negotiations" regarding a dispute over its maquiladora manufacturing facilities in Tijuana, Mexico. The dispute is with Cal Pacifico, a Newport Beach, California contractor of maquiladora manufacturing services through which Alaris manufactures its products at two Tijuana plants under a "shelter" arrangement. Alaris says it notified Cal Pacifico in April that it would terminate the shelter program Aug. 1 and would take over its own manufacturing operation in Mexico. On June 11, five days after Alaris hired workers at the two plants, Cal Pacifico expelled all Alaris personnel from the facilities, thereby halting production. Alaris says it is ramping up manufacturing activities at its sites in San Diego, North Carolina, and Europe to address the shut down in Mexican operations and is "working diligently with Mexican authorities" to resume manufacturing in that country. The firm notes that it "does not anticipate that the dispute will have an impact on customers or results of its operations for the second quarter"...

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