Medical manufacturer Microtek Medical Malta will be shutting down its operations, leaving 96 employees facing redundancy after its parent companies initiated a major global restructuring exercise.

The news was confirmed by Economy Minister Silvio Schembri, who said the company’s decision forms part of a wider reorganisation within Medline and its Ecolab Surgical Solutions group.

He explained that Medline – a US medical supplies giant employing roughly 43,000 people worldwide – is consolidating manufacturing activity across the group, which includes Ecolab Surgical Solutions with around 3,500 employees globally. Microtek Medical Malta falls under this umbrella, and the local facility has been earmarked for closure.

The Minister stressed that the development is not linked to the performance of the Maltese plant or its workforce. “This decision has nothing to do with the excellent capabilities, dedication or quality of the workers in Malta,” he said, noting that the move stems from “a global manufacturing restructuring aimed at consolidating production in larger existing facilities”.

He  acknowledged the difficult timing of the announcement, particularly as it comes just weeks before Christmas. Discussions have already started between the government, the General Workers’ Union (GWU) and relevant agencies to ensure that all 96 workers are supported and placed in new roles as quickly as possible.

A joint task force between the government and the GWU has been set up and is in contact with large local employers who are currently seeking workers with comparable skills. A dedicated helpline – 2567 9207 – has been activated to serve both employees needing guidance and companies interested in hiring.

Despite describing the closure as a setback, he stressed that Malta’s labour market remains resilient, with a number of companies expanding their operations and actively seeking specialised staff. “This is why we always insist on the importance of sustained economic growth,” he said, arguing that strong economic momentum helps reduce uncertainty for workers in situations such as these.

In its reaction, the General Workers’ Union said the situation was “particularly concerning”, especially given the proximity to the festive period. The Union said its immediate priority is to protect the livelihoods of the 96 affected families.

“While the GWU is currently engaging with the company to challenge the timeline and terms of this redundancy process to ensure full legal compliance, the primary focus has shifted instantly to safeguarding the livelihoods of the affected families,” it said.

The GWU also noted that it had been assured the redundancies were “solely the result of global corporate restructuring” and unrelated to employee performance. However, it added that the announcement raises concerns given reports that Medline Industries is preparing for a multi-billion-dollar Initial Public Offering (IPO), suggesting the cuts may be linked to efforts to strengthen the company’s valuation “at the expense of loyal employees”.