Merck Animal Health to centralize functions at headquarters

Merck Animal Health, known as MSD Animal Health outside the United States and Canada, today announced that it intends to centralize certain functions at the existing Merck Campus in Summit, New Jersey, USA.

The plan, taken as part of the business’s worldwide strategic plan and blueprint for significant growth, will result in centralizing most Commercial, Marketing and Corporate Headquarter functions in Summit. This worldwide plan follows the announcement in March 2011 that the animal health business remains a core part of Merck, its renaming to Merck Animal Health (MSD Animal Health outside the US and Canada) and an extensive evaluation of the business and its strategy including its geographical footprint.

“Merck Animal Health is one of the largest and most profitable animal health businesses in the world and well positioned in a number of fast growing segments within the global animal health market. We believe that we can operate more effectively and efficiently with the centralization of our headquarter functions in the U.S.,” commented Rick De Luca, Merck Animal Health President. “This will lead to a more integrated leadership team, and strengthen the team cohesion required to operate at the highest level globally. It will also place us in the important US market and brings us closer to our parent company to align in strategy and leverage our shared rich resources.”

The structures of the HQ and the specific units and individual positions it will comprise have been outlined in a plan. The plan is expected to have impact on a limited number of positions at amongst others Merck’s Animal Health site in Boxmeer (the Netherlands).

In that respect a local proposed decision and its implications for the organization in The Netherlands – redundancies are estimated to be in the order of 65 - is now subject to Works Council consultation. The company is working closely with the Works Council to address questions and provide support wherever needed. Potentially affected employees have been informed.

It is important to stress that the Boxmeer site will remain a pivotal part of the Merck Animal Health global business and strategy. The vital Biological R&D operation and a large and strong manufacturing organization will remain at Boxmeer, which is expected to continue to employ approximately 1700 employees.