AMRI has implemented a plan to restructure its large scale manufacturing operations in Rensselaer, NY, following a detailed analysis of the site’s processes, management, cost structure, efficiency and profitability. The restructuring plan aims to strengthen the company’s competitiveness in large scale manufacturing and reduce operating costs through leadership, increasing efficiency and eliminating overlap. Through this effort, the company expects annual savings of approximately $5 million beginning in 2007. The savings are expected to occur through workforce reductions as well as non-workforce-related actions such as disposal of underutilized assets, elimination of non-essential operating expenses, and reductions in raw material costs. Many of these initiatives will be implemented by the end of this year.

As part of this restructuring plan, the company expects to reduce the employee base at its Rensselaer manufacturing site by approximately 40 people, or 15% of the large scale manufacturing workforce, through attrition, retirements and job eliminations. Charges relating to this restructuring are estimated to be approximately $3 to $4 million.

Also, Kenton L. Shultis, vice president and general manager of the company’s large scale manufacturing business, has been reassigned to an advisory role reporting to the chief executive officer, Thomas E. D’Ambra, Ph.D. The company is looking for a successor to Mr. Shultis.

“This initiative is designed to sharpen operational and financial focus on the size of our large scale manufacturing operations with customer demand, consistent with our business strategy,” said Dr. D’Ambra. “We take these carefully considered steps as we continue to implement a well-defined growth strategy for our chemistry services business and, in particular, our large scale manufacturing operations. These actions build on our ongoing cost-savings efforts in Rensselaer, and support the transition of this facility away from a structure built to accommodate a few, larger legacy products to a more nimble, agile infrastructure that supports a number of projects produced simultaneously. As part of our efforts to focus resources at this facility, AMRI has invested over $40 million in improvements during the last three years. We take these actions today to position this key business component for both near- and long-term growth, and help establish the Rensselaer facility as a key driver for revenue and earnings well into the future.”