Getinge/Castle sees growth despite cutting jobs

Smriti Jacob//February 22, 2002//

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Despite cutting one-third of its manufacturing jobs here, Getinge/Castle Inc. continues to attract business worth millions of dollars.
Getinge/Castle last year received orders totaling more than $2 million from University of Rochester and the Centers for Disease Control and Prevention. The spike in business followed the terrorist attacks on the United States.
“It was the effects of Sept. 11. We got some large orders from CDC and UR, primarily in the area of sterilization and washing,” said Creighton White, president and CEO of Getinge/Castle.
The company last month slashed one-third of its local manufacturing jobs in an effort to consolidate its operations. A portion of the firm’s local sterilizer manufacturing will shift to the facilities of its Swedish parent, Getinge AB.
“We are realigning our manufacturing on a global scale; we are shifting some of the jobs to Sweden,” White said. “But the Rochester facility remains the headquarters for Getinge/Castle operations in the United States.”
Chambers for a new series of sterilizers will be made in Sweden. The Henrietta facility will continue assembling the sterilizers once the chambers are shipped to the United States.
Getinge/Castle employs some 300 manufacturing workers, and a total of 444.
The company plans to cut one-third of manufacturing positions-an estimated 100 jobs-effective by the end of March, reducing its total employment here by more than 20 percent.
The firm’s local operations contribute 20 percent to 25 percent of the Getinge/Castle’s total revenues. Its parent company, Getinge, reported net sales of $770 million in 2001, up 55 percent from last year.
“It has been a year (2001) of fairly dynamic change in growth,” White said.
Getinge/Castle serves the health care and scientific markets, which involve areas such as life sciences and pharmaceuticals. Its products include surgical tables, sterility products and surgical scrub stations.
The company traces its roots here back to the 1800s. Established as Wilmot Castle in 1883, the company went through a couple of name changes before it came to be known as Getinge/Castle.
Getinge, traded on the Stockholm Stock Exchange, is based in Getinge, Sweden. Getinge/Castle is part of the $220 million entity known as the Getinge Americas Group.
In 1996, Getinge/Castle posted a loss of $4 million, industry reports say. The firm has since enhanced product lines, acquired several businesses and ramped up its service efforts to increase its presence in the medical-equipment market.
Getinge AB most recently signed an agreement to acquire Heraeus Medical Technology, a unit of European Heraeus Group. The acquisition strengthens Getinge AB’s presence in the surgical-systems market.
“It adds about $45 million to the Group,” White said.
Heraeus Medical Technology produces surgical-lighting systems and other ma-terials for operating theaters.
The acquisition is expected to significantly strengthen profits in 2003, a Getinge report states.
In the sterilization area, the company this month added two new sterilization products to its portfolio, targeting its health care and laboratory customers.
“It is a good product introduction,” White said.
The steam sterilizers are made of corrosion-resistant material and offer increased loading capacity and a large interactive display screen, among other features. The new sterilizers come in two sizes for health care and scientific purposes and can be used in surgical centers, operating rooms and laboratories.
New products and acquisitions of companies in the surgical and medical-devices industry are a part of Getinge/Castle’s strategy to garner market share. One of the firm’s largest competitors is Steris Corp. The Ohio-based Steris and Getinge/Castle control more than 80 percent of the market.
“Aggressive acquisitions put us in a clear No. 1 position,” White said. “We have the ability to provide a total package.”
The company also is revamping its product line.
“Customers are able to come to one place and have access to products that are new in their product life,” White added.
As Getinge/Castle pushes ahead with new product and acquisitions, Rochester will continue to be the focal point of its manufacturing operations in the United States.
“We have made a long-term commitment to Rochester,” White said.
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