Johnson & Johnson Announces Penn Plant Shut Down

Businessweek: In the wake of a congressional investigation into a recall of children’s medicine, Johnson & Johnson announced yesterday that it will close down the Fort Washington, Pennsylvania facility where the drugs were manufactured.  In April, the company issued a recall on over 40 of its over-the-counter children’s products such as Tylenol, Motrin and Benadryl.  The items did not meet internal quality control standards.  The investigation stems from allegations that J&J attempted to hide a recall of defective Motrin pills.

The plant, said a spokesperson, will be shut down for reorganization.  As a result, about 75 percent of its workforce there, about 300 employees, will be let go.

Johnson & Johnson will offer the laid off workers pay benefits through at least mid-September and then offer severance packages based on time with the company.  The plant will be closed until at least mid-2011.