2008 Nov 5
PRESS RELEASE
Vara, November 5, 2008
Pharmadule to concentrate production – lays off employees in Vara
The Board of Directors of Pharmadule AB intends to concentrate the company’s production resources to Jüri, Estonia. This means that all 60 employees at the company’s unit in Emtunga, outside Vara, will be given notice of termination.
Co-determination negotiations with the appropriate trade union organizations with the aim of discontinuing the operations in Vara will commence immediately.
During the autumn, Pharmadule has conducted a review and evaluation of the company’s production resources to strengthen their long term competitiveness. This work has led to a decision by the Board to concentrate production to the existing plant in Jüri, Estonia, which has favorable prospects of continuing to develop in a successful manner.
“This is painful but necessary step. Our production unit in Estonia has the capacity to meet our production requirements and has lower costs than the unit in Vara. This change will result in a number of economies of scale and lead to higher cost-efficiency and, accordingly, further strengthened competitiveness,” says Lars Martinsson, CEO of Pharmadule AB.
In recent years, Pharmadule has worked intensively to increase productivity at the plant in Vara and the personnel have done an excellent job during this effort. However, the prevailing market situation has led to the company’s production capacity not being utilized efficiently. By assuming a proactive approach now, Pharmadule will strengthen its competitiveness in the global market.
“We will do our best to ensure that our employees in Vara find new opportunities. For example, we will work to find a party that is interested in taking over our personnel and facility in Vara,” says Lars Martinsson, CEO of Pharmadule AB.
Pharmadule, which is a world-leading supplier of modular production facilities for the pharmaceutical and biotechnology industry, has nearly 400 employees.
For further information, please contact:
Lars Martinsson, CEO of Pharmadule AB +46 (0) 8 587 42 000