Hamburg, Germany-based Evotec will close its chemistry operations in Thane, India. All chemistry work now will be performed at its Abingdon, U.K., facility, to address to an increasing requirement to operate closer to the principal R&D laboratories of major customers. All project work in Thane will be completed by the end of September, and Evotec (India) Private will then wind down.

As a result, the company will cut 120 people and Evotec will take a one-time impairment charge.

“Evotec was due to relocate its Indian chemistry operations in June 2014,” said Dr. Mario Polywka, COO of Evotec. “During the due diligence in finding a new facility and because of growing customer requirements for European-based activities, we came to the conclusion to exit our operations in India completely. Through this realignment we will be able to most efficiently serve our customers, utilize our U.K. chemistry resources and capabilities and also realize some cost savings. Unfortunately, the impact is that we must say goodbye to a first-class work force in Thane that has so ably supported our customers over the last four years.”

Evotec (India) Private is a 100% subsidiary of Evotec. Its offerings include custom synthesis, process research and development, scale-up and analytical services.