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With the global coronavirus pandemic ravaging the economy and affecting its bottom line, Jabil Inc., one of the region’s largest publicly traded companies, has reorganized and invested in its health care services.
The St. Petersburg-based manufacturer says it will consolidate health care operations under one new division, Jabil Healthcare. The company acquired extensive capabilities in injection molding for making precision-plastic medical devices when it bought Clinton, Mass.-based Nypro in 2013.
Nypro, according to a news release, will be renamed Jabil Healthcare. The division employs some 20,000 people at 35 locations, including a plant in Asheville, N.C., that Jabil intends to expand with a $18.5 million investment.
“By harnessing the power of the Jabil and Nypro teams, we are in the unique position to accelerate technology advancements and augment the value we bring to our customers, their patients and the health care industry,” Jabil Healthcare CEO Steve Borges states in the release. “With the rise of digital health and additive manufacturing, the time is right to unite our diverse capabilities and domain expertise under one strong brand.”
However, the move comes at a tough time for Jabil, which has seen the COVID-19 outbreak reduce the output of its factories by as much as 35%.
"Our first priority is the overall safety of our people,” Jabil CEO Mark Mondello states in the release. “To this end, we’ve instituted broad testing and quarantine protocols to support those who are on-site at our factories. In addition, we remain in close contact with our employees who’ve been unable to return to work due to on-going travel restrictions.”
Jabil (NYSE: JBL) reported gross revenue of $25.28 billion in 2019, up from $22.1 billion in 2018. In a Feb. 25 statement, the company says it expects the coronavirus pandemic to have a negative impact on its second-quarter fiscal performance.
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