Schering-Plough Corp. has made changes to its manufacturing operations in Puerto Rico and the U.S. The company is phasing out manufacturing operations at its Manati, Puerto Rico site, with the expected discontinuation of substantially all operations by the end of 2006. In addition, there will be workforce reductions at manufacturing facilities in Las Piedras, Puerto Rico and in New Jersey.

The actions taken will result in the elimination of approximately 1,100 positions, primarily in 2006. Approximately 600 regular full-time positions will be eliminated in Puerto Rico, including approximately 550 in Manati and 50 in Las Piedras. The company expects to continue to employ approximately 475 people in Las Piedras. Approximately 500 regular full-time positions will be eliminated in NJ between the Kenilworth and Union sites. SP continues to employ approximately 7,000 in NJ and plans for continued growth in strategic areas of the business such as R&D.

Total expenses associated with these actions are expected to be in the range of $235-$260 million, related to severance ($60-$70 million), fixed asset and inventory write-offs ($85 million), and accelerated depreciation and closure costs ($90-$105 million). The company anticipates these actions will generate annual cost reductions of approximately $100 million in 2007.

“The actions we are announcing today are another step in our Action Agenda to transform this company into a high-performance competitor for the long term,” said Fred Hassan, SP’s chairman and chief executive officer. “Undertaking these workforce reductions was a difficult decision. To support employees who are affected by these actions, we will be implementing a variety of programs as well as working closely with local authorities and communities to mitigate the impacts.”