Kirschner to sell building, move some work to N.J.

May 11, 1991|By Kim Clark

Kirschner Medical Corp. announced yesterday it would phase out one of its Maryland medical equipment manufacturing operations, sell its Timonium headquarters building and move its administrative staff into smaller nearby offices.

C. Scott Harrison, chairman of the troubled medical products company, said yesterday that the 30-worker orthopedics production facility in Maryland would be closed and moved to Kirschner's Fairlawn, N.J. plant.

Some Maryland workers at the plant, which finishes products such as artificial knees, will be offered positions at the New Jersey facility, he said.

However, Kirschner, which has 500 workers worldwide, will keep its 25-worker veterinary products facility and its 135-worker company headquarters in Maryland, he said.

After closing down the Maryland orthopedics operations, Kirschner will have too much space in its Timonium headquarters, said David Mercer, president of the orthopedics products division.

Kirschner, which lost $6 million in 1990, has put its Timonium headquarters up for sale and is looking for smaller office space nearby, he said.

The consolidation is the latest money-saving move by a company that has lost more than $20 million in the last two years.

Mr. Harrison said he expected the consolidation to improve the company's gross profit margin by 1 percent to 2 percent by next year but didn't expect to see any real savings this year.

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