RH takes Lumenis' production

0 Comments | Oakland Tribune, Jan 8, 2004 | by David Morrill, BUSINESS WRITER

Lumenis Ltd. will outsource the products it makes from its Pleasanton plant in an effort to save $5 million over the next five years.

The developer of laser and light devices used for medical- aesthetic operations expects to close on a deal next week that will allow RH Technologies Ltd. to take over the production efforts in Pleasanton.

Both Lumenis and RH Technologies are headquartered in Israel.

A total of 45 employees work at the Lumenis Pleasanton site. Under the proposed deal, they will still have jobs as they will become RH Technologies employees and work out of the same site, the company said. The agreement is for an initial term of four years.

"This new agreement will allow us to reduce costs while maintaining the expertise and highest standards developed in Pleasanton," Avner Raz, president and chief executive officer of Lumenis, said in a statement.

The Research and Development, and Marketing activities that were previously based in Pleasanton will be transferred to Santa Clara.

Lumenis is making these move as part of its "turnaround plan" in which the company seeks ways to close sites and cut costs.

The most prominent product being manufactured at the Pleasanton site is the Lightsheer System, which is used for hair removal.

Shares of Lumenis traded at a high of $1.78 Wednesday before closing up 7 cents, or 4.35 percent, at $1.68.

David Morrill can be reached at (925) 416-4805 and dmorrill@angnewspapers.com .