Align Technology to consolidate CAD/CAM business

Align Technology is consolidating its New Jersey-based CAD/CAM services and scanner-related activities with existing manufacturing and services operations to increase efficiency and reduce operating costs, the company announced.

The New Jersey facility has been the headquarters of Cadent, an intraoral scanner company acquired by Align earlier this year.

All existing scanner research and development and manufacturing operations will remain in Or Yehuda, Israel.

Specifically, Align plans to do the following:

  • Consolidate all CAD/CAM services and scanner customer care into Align's existing shared services organization in Costa Rica.
  • Transition CAD/CAM services and scanner distribution and repair to operations in Costa Rica and manufacturing facilities in Mexico.
  • Consolidate accounting and finance functions at Align's corporate headquarters in California.
  • Close the New Jersey facility by the third quarter of 2012.

The consolidation of Align's New Jersey operations includes a total reduction of 119 full-time employees.

"After acquiring Cadent, our initial integration focus was on identifying revenue synergies and leveraging Align's sales and marketing resources to better drive and support go-to-market initiatives for iTero and iOC scanners," stated Thomas Prescott, president and CEO of Align Technology, in a press release. "Now, with the bulk of integration well under way, we can accelerate other initiatives such as enhancing the customer experience, improving operational efficiency, and reducing costs."

Once the consolidation is complete, Align expects to realize annualized net savings of approximately $4 million per year, he added.

In related news, Align has expanded its manufacturing operations in Juarez, Mexico, with the purchase of land and a 150,000-sq-ft manufacturing facility. Align paid approximately $3.2 million in cash for the property and plans to transition its aligner fabrication and scanner-related activities to this facility in 2012.

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