Charles River To Close Shrewsbury Lab
Charles River Laboratories International Inc. of Wilmington will close its 400,000-square-foot facility off Route 9 in Shrewsbury by the middle of the year, leaving 300 people without jobs.
The company said it expects to save about $20 million this year as a result of the closing and that it would consider reopening the facility when the market for preclinical studies improves.
As a result of the closure, the company will take charges of about $7 million in the first quarter for severance and other related costs.
Charles River said it expects the preclinical research sector to begin showing improvement in the second quarter, but the last 15 months have seen "extended softness" throughout the contract research industry.
In the third quarter of last year, the company reported revenue of $297 million and a profit of $37 million compared to revenue of $342 million and a $45.5 million profit in the same period the prior year.
The company bought the Shrewsbury facility in 2005 and later moved there from its building at 55-57 Union St. in Worcester, which it had outgrown.
Charles River sold the 160,000-square-foot Union Street building in late 2008 to TDG Union Street LLC of Boston for $9.1 million.
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