Welch Allyn plans to shift Euro headquarters to Netherlands
Welch Allyn is planning to move its European hub to the Netherlands, consolidating many of its overseas sites into an Amsterdam facility over the next two years.
The move comes after a 90-day self-evaluation of its European business, Welch Allyn said, something it kicked off in September when it announced plans to cut about 275 jobs over the next three years and shuffle operations around the globe.
That move was forced by "the new onerous U.S. medical device tax," Welch Allyn said, but the Netherlands plan is designed to help the private devicemaker compete in a changing global market, CEO Steve Meyer said.
"The Netherlands has established itself as a leading site for European headquarters for many U.S. companies," Meyer said in a statement. "As a pro-business country, the Netherlands offers a climate to successfully compete in Europe."
The new headquarters will pull staff and capabilities from Welch Allyn's Navan, Ireland, facility, and the company will also close its Jungingen, Germany, manufacturing plant, transferring the workload to Tijuana, Mexico.
In the announcement, Meyer praises the Netherlands' "supportive corporate tax structure" in explaining the decision, and if the company's budget-slashing to prepare for the device tax doesn't prove sufficient, it's possible Welch Allyn could move more of its operations overseas to dull the blow of the coming 2.3% charge on U.S. sales.
- read the statement