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Orthopedic Device Maker Expanding Foundry

July 24, 2008
Zimmer to increase castings output by 1.3 million annually

Zimmer Holdings Inc. is planning a 50,000-ft2 expansion of its Warsaw, IN, foundry operation, a $19-million project. Zimmer produces a range of orthopedic devices, including replacement knee and hip joints and spinal structures.

The details of the expansion were scarce, but the producer indicates that the extra space and more process automation will increase castings output by about 1.3 million units annually. Zimmer says the expansion will create up to 100 new jobs at the plant by 2011, and it will be hiring engineers, supervisors and machine operators next year.

The Indiana Economic Development Corp. has offered Zimmer up to $400,000 in performance-based tax credits indexed to the number of new jobs created by the expansion, and the city of Warsaw is offering property tax abatement.

“We are making a number of quality and infrastructure investments to prepare Zimmer to compete in the health care markets of the future,” stated Zimmer Holdings president and CEO David Dvorak. “The demand for joint replacements continues to grow worldwide and we are pleased to be adding this state- of-the-art foundry to our Warsaw facilities to address growth in a very cost-effective manner.”

Zimmer says this will be its fourth expansion in Warsaw in the past four years. In 2007, it outlined a $66 million project to add 120,000 ft2 to its manufacturing and distribution operation. In 2005, started an expansion of its global research and development center, and nearly 100,000 ft2 of lab space. In 2004, Zimmer started a $64-million project to expand its manufacturing and distribution centers in Warsaw.