Collagen Solutions PLC (LON:COS) said it expects to reach “a profitable state more quickly than previously planned” following the restructure of its New Zealand operation.
The proposal, which is subject to an employee consultation process, would see the division focus on tissue collection and processing, a segment estimated to be worth US$100mln.
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A key component of its activities will remain the sourcing of both New Zealand and Australian collagen exclusively for both customers' and proprietary products, the company said.
Existing collagen production will be consolidated into Glasgow, it added.
Annual savings are estimated to be £200,000 with one-off costs in the order of £150,000, Collagen Solutions told investors.
Chief executive Jamal Rushdy said: “There are two sides to making this change, firstly there is the human side, and the potential loss of valued and dedicated employees in New Zealand who through no fault of their own may no longer have a job with Collagen Solutions.
“The other side is our responsibility to our stakeholders as a whole, and this change will help our key objectives of building a sustainable, profitable and cash-generative company in the near to medium term."