Abbott Laboratories is building a new infant-formula manufacturing plant after the product shortage of the past year revealed gaps in U.S. production capacity.
The Chicago area-based company plans to spend $500 million to build a new baby-formula plant, chief executive Robert Ford said. An analysis of the domestic market showed the U.S. could use more capacity to ensure such shortages don’t happen again.
“We are currently in the final stages of determining the site location,” Ford told analysts and investors Wednesday morning.
A company spokeswoman declined to offer more information on the timeline for the new U.S. facility.
The news came during Abbott’s third-quarter earnings call, where it reported lower sales attributed to softening demand for its at-home COVID-19 test kits and continued fallout of the closure of a baby formula plant in Sturgis, Mich. The U.S. Food and Drug Administration found signs of harmful bacteria at the facility early last year, resulting it its closure from February to July.
