The closure of Sterigenics’ Cobb County medical sterilization plant has cost one of its customer companies about $9 million in revenue loss in the last three months of this year alone, financial reports show.
Teleflex is a global medical product supplier with annual revenue of around $2.4 billion, operating in dozens of countries with corporate headquarters in Pennsylvania, its website states.
Its president and chief executive officer, Liam Kelly, released the company’s third quarter 2019 financial report Thursday, with comment about how the Sterigenics’ Cobb plant closure, since the end of August, is negatively impacting Teleflex.
“Based on currently available information, we believe that the suspension of operations at Sterigenics’ Smyrna facility will adversely affect our revenues by approximately $9 million during the fourth quarter of 2019,” Kelly states in his Oct. 31 report, co-signed by Teleflex Executive Vice President and Chief Financial Officer Thomas Powell. “In addition, while we are working to identify alternate sterilization facilities for the affected product, if operations at the Smyrna facility remain suspended and we are unable to find adequate sterilization capacity at an alternate facility or facilities, we expect the suspension of operations at the Smyrna facility will continue to adversely affect our revenues in 2020.”
The Teleflex report is here:
A spokesman for Sterigenics, Bryan Locke, told the MDJ the company cannot comment on “details related to customers.”
Sterigenics’ plant at 2971 Olympic Industrial Drive in southeast Cobb is currently closed pending approval to reopen by Cobb County and the Georgia Environmental Protection Division.
It uses ethylene oxide, a carcinogen, to sterilize packaged medical equipment like catheters, feeding tubes, cardiac stents and surgical kits used in operations like emergency C-sections, heart surgery and hip or knee replacements, according to