ALARIS Medical Systems confirms contract dispute with maquiladora operator.SAN DIEGO--(BUSINESS WIRE)--June 17, 1997--ALARIS Medical Inc. (Nasdaq:ALRS ALRS Admiralty List of Radio Signals ALRS Alerting Service (aviation) ALRS Apache Leap Research Site ALRS Alternate Launch & Recovery Surface ALRS Automated Logistics Retrieval System ALRS Automatic Line Router Switch ) Tuesday announced that it is proceeding with negotiations to resolve a dispute with Cal Pacifico, a Newport Beach Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif., maquiladora ma·qui·la·do·ra n. An assembly plant in Mexico, especially one along the border between the United States and Mexico, to which foreign materials and parts are shipped and from which the finished product is returned to the original market. contracting firm. The company has implemented contingency plans to manage inventory levels and is establishing alternative manufacturing in other sites. At this point, the company does not anticipate that the dispute will have an impact on customers or results of its operations for the second quarter. ALARIS Medical Systems Inc., the company's operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , has manufactured its disposable intravenous-administration sets in two maquiladora plants in Tijuana under contract with Cal Pacifico for more than eight years. These facilities, which operate under a ``shelter program'' with Cal Pacifico and two affiliated Mexican companies This is a List of Mexican companies:
In April, ALARIS Medical notified Cal Pacifico that it would be terminating its shelter arrangement effective Aug. 1, in accordance with the terms of the agreements signed with Cal Pacifico and its affiliated entities. ``The Tijuana work force has repeatedly asked to be a part of ALARIS Medical for over two years. Although we had hoped for a timely transition, our decision is being disputed by Cal Pacifico,'' said ALARIS Medical President and Chief Executive Officer William J. Mercer. ``In response to Cal Pacifico's reaction to our notification and out of concern for the workers at the two facilities, ALARIS Medical hired all employees directly on June 6, 1997. ``At approximately 2 p.m. (PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) on Wednesday, June 11, 1997, Cal Pacifico expelled ALARIS Medical administrative personnel and production employees from the plants, temporarily halting manufacturing operations,'' Mercer said. ``All of our employees at the two facilities continue to be paid by ALARIS Medical, and we have begun to implement alternative manufacturing,'' he said. ``It's important to note that these products are used in the intravenous delivery of vital and life-sustaining drugs,'' Mercer noted. ``As a global manufacturer, we are committed to our customers and are ramping up our existing disposables-manufacturing capabilities in San Diego, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and in Europe and implementing alternative manufacturing arrangements in Tijuana. ``We also are committed to our operations in Tijuana and our 1,200 employees at that site,'' Mercer said. ``We are working diligently with Mexican authorities to allow us to resume manufacturing,'' he said. Previously known as Advanced Medical Inc., the company announced a name change to ALARIS Medical Inc. in May 1997. Its operating company operating company A business that engages in transactions with outsiders. , ALARIS Medical Systems Inc., is known for its IMED IMED International Medical Education Directory and IVAC IVAC Islington Voluntary Action Council (England, UK) IVAC Insert Valid Access Card (satellite TV hacking) IVAC International Video & Audio Convention IVAC Idle Air Control Valve brand names of intravenous infusion-therapy systems. The company's principal line of business is the design, manufacture and marketing of intravenous infusion-therapy products, periodic patient-monitoring instruments and related disposables. ALARIS Medical's products are distributed to more than 120 countries worldwide. In addition to its San Diego world headquarters and manufacturing facility, the company operates manufacturing facilities in Creedmoor, N.C.; Basingstoke, Hampshire, England; and Tijuana, Mexico. -0- Statements in this news release that are not historical facts, including statements about expectations regarding the anticipated outcome of this dispute and its impact on financial performance, are forward-looking statements that involve risk and uncertainties. Risk factors, including, without limitation, foreign operations, are detailed in the Securities and Exchange Commission filings of Advanced Medical Inc. and ALARIS Medical Systems Inc., particularly the Advanced Medical Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing for the year ended Dec. 31, 1996. CONTACT: ALARIS Medical Inc., San Diego Barbara Burkett, 619/458-7038 or The Financial Relations Board Inc., Los Angeles Fiona Ross or Stacy Roughan (general information) Moira Conlon (investor/analyst contact) Steven Seiler (media contact) 310/442-0599 |
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