Respironics to Build New Manufacturing Facility for Production of Sleep Therapy Devices
by Laurence Wooster | August 01, 2007
The market for sleep
aids is growing rapidly
aids is growing rapidly
MURRYSVILLE, Pa. -- Respironics, Inc. (Nasdaq: RESP) announced plans to build a $32 million manufacturing facility focused on the production of its sleep therapy devices. Situated on 56 acres at Westmoreland Business & Research Park, in Upper Burrell Township, the new 165,000-square-foot facility will be located approximately seven miles from the Company's Corporate Headquarters and its current Sleep and Home Respiratory manufacturing facility in Murrysville, Pennsylvania.
The need for a dedicated world class plant for sleep therapy products is owed to sizable growth in the global sleep market, estimated to be growing at 15% to 20%, coupled with Respironics' widening portfolio of medical devices designed to address market needs in the overall sleep and respiratory markets globally. Since the current plant was constructed in 1990, Respironics has grown to a $1.2 billion company with a presence in more than 131 countries. It operates manufacturing sites in Pennsylvania, California, Georgia, Connecticut, Oregon and abroad.
"This new facility will enable us to further the development of our center of excellence manufacturing strategy by focusing on products to support our Obstructive Sleep Apnea (OSA) business, a core growth driver of the Company," said John L. Miclot, President and Chief Executive Officer. "It also offers us many other benefits including the potential for high volume material logistics and production and optimization of process efficiencies," Miclot added.
The Company pioneered sleep therapy with the commercialization of continuous positive airway pressure (CPAP), a proven treatment for OSA. The National Sleep Foundation reports more than 18 million Americans suffer from this chronic condition. An apneic event occurs when breathing is interrupted during sleep, sometimes for as long as 10-30 seconds and as often as 400 times a night.
Respironics will finalize plans for the new facility over the next several months with completion expected in approximately 14 to 16 months. The current manufacturing site in Murrysville will be used as a multi-purpose facility and will continue to produce certain devices including ventilation and neonatal products used in the hospital and homecare markets.
The new manufacturing site is one of several recent facility enhancements by Respironics to accommodate its growing operations and workforce. The company currently employs more than 1,700 associates in Western Pennsylvania and nearly 5,000 worldwide.
The need for a dedicated world class plant for sleep therapy products is owed to sizable growth in the global sleep market, estimated to be growing at 15% to 20%, coupled with Respironics' widening portfolio of medical devices designed to address market needs in the overall sleep and respiratory markets globally. Since the current plant was constructed in 1990, Respironics has grown to a $1.2 billion company with a presence in more than 131 countries. It operates manufacturing sites in Pennsylvania, California, Georgia, Connecticut, Oregon and abroad.
"This new facility will enable us to further the development of our center of excellence manufacturing strategy by focusing on products to support our Obstructive Sleep Apnea (OSA) business, a core growth driver of the Company," said John L. Miclot, President and Chief Executive Officer. "It also offers us many other benefits including the potential for high volume material logistics and production and optimization of process efficiencies," Miclot added.
The Company pioneered sleep therapy with the commercialization of continuous positive airway pressure (CPAP), a proven treatment for OSA. The National Sleep Foundation reports more than 18 million Americans suffer from this chronic condition. An apneic event occurs when breathing is interrupted during sleep, sometimes for as long as 10-30 seconds and as often as 400 times a night.
Respironics will finalize plans for the new facility over the next several months with completion expected in approximately 14 to 16 months. The current manufacturing site in Murrysville will be used as a multi-purpose facility and will continue to produce certain devices including ventilation and neonatal products used in the hospital and homecare markets.
The new manufacturing site is one of several recent facility enhancements by Respironics to accommodate its growing operations and workforce. The company currently employs more than 1,700 associates in Western Pennsylvania and nearly 5,000 worldwide.
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