Abbott intends to construct a $500 million baby formula facility

Abbott intends to construct a $500 million baby formula facility

Abbott plans to construct a $500 million infant formula factory and is increasing production at other plants in an effort to address continuing shortages in the United States.

Robert Ford, the company’s chairman and CEO, told investors on Wednesday’s results call, “We are in the final phases of determining the site location and will work with authorities and other experts to guarantee this facility is state-of-the-art and sets a new standard for infant formula production.”

Ford stated that the decision to invest in a new factory resulted from an examination that concluded “this country would benefit from increased production capacity and redundancy.”

In February, Abbott temporarily closed its largest plant in Sturgis, Michigan, and recalled several prominent brands of infant formula, including Similac, causing severe shortages of baby formula.

Two infants died after contracting one of four bacterial diseases after consuming powdered formula from the mill, prompting the plant’s shutdown and a federal investigation. The company stated that its products were not directly associated with the infections, which were caused by several bacterial strains.

Eventually, FDA investigators discovered numerous infractions at the business, including bacterial contamination, a leaking roof, and inadequate safety protocols. July marked the resumption of manufacturing at the Sturgis facility, but Abbott’s problems with baby formula have persisted.

Abbott recalled some newborn and children’s formula on Friday because the bottles’ tops may be faulty and not seal properly, potentially leading to spoiling. The business stated that the latest recall is quite limited and should not lead to a repeat of the massive formula shortages seen earlier this year.

This recall represents less than one day’s worth of the entire number of ounces of newborn formula fed in the U.S., according to Abbott, the leading U.S. formula maker based in Illinois.

Certain 2 fluid ounce/59 milliliter bottles of Ready-to-Feed liquid products for babies and children are being recalled. Abbott stated that the formula could cause diarrhea and vomiting if ingested.

The recalled brands include Similac Pro-Total ComfortTM, Similac 360 Total Care, Similac 360 Total Care Sensitive, Similac Special Care 24, Similac Stage 1, Similac NeoSure, Similac Water (sterilized), and Pedialyte Electrolyte Solution, all of which were manufactured at Abbott’s Columbus, Ohio facility.

In addition to increasing production across its global network, Abbott continues to produce Similac products for hospitals and other health care providers on a different production line, and the infant formula is still available in alternative product sizes in retail stores, according to the company.

Distributed largely to hospitals, doctors’ offices, and merchants in the United States, including Puerto Rico. Two lots were shipped to Canada, Curacao, Panama, and Trinidad and Tobago.

Customers who may have purchased recalled formula should not use it and should instead visit similacrecall.com to read a list of the affected lot numbers or utilize the website’s lot number checker.