Abbott Resumes Similac Infant Formula Production at Michigan Facility

According to Zhitong Finance APP, Abbott (ABT.US) has resumed production of Similac infant formula at its manufacturing facility in Sturgis, Michigan, which was shut down earlier this year due to safety concerns. The company stated that it will take approximately six weeks before products can be delivered again to retail locations.

Previously, Abbott Laboratories, the largest infant formula supplier in the U.S., recalled some products and shut down its Michigan factory due to bacterial contamination issues, triggering a shortage of infant formula in the United States. After reaching an agreement with the FDA, Abbott resumed operations at the facility in early June and began producing EleCare and other specialty formulas. However, flooding in the surrounding area forced the plant to halt production again a few days later. On July 1, Abbott restarted the production of EleCare and certain metabolic formulas, stating that these products would begin shipping in the coming weeks. Abbott plans to supply over 8 million pounds of infant formula starting in August, exceeding delivery levels from the same period last year.

At the same time, Abbott announced that it would extend the rebate period for beneficiaries of the Women, Infants, and Children (WIC) program until October 22. Due to the closure of the Michigan plant, the revenue of Abbott's nutrition division in the first half of 2022 decreased by 16% year-on-year to 1.4 billion US dollars.