Back

GSK proposes to exit Brasov site from its manufacturing network, and is searching for a third party buyer

Date: 07/01/2013
Source: GSK Romania
• GSK proposes to exit the Brasov site from its manufacturing network, following the conclusion of a recent review of the solid dose activities across the GSK’s manufacturing network, as a consequence of the current overcapacity in the company’s oral solid dose manufacturing network.

• For a 6 month period, GSK will explore if there is an opportunity for selling the site to a third party buyer with a short term transitional supply agreement.
.....................................................................................................................................................

GlaxoSmithKline (GSK) regrettably has proposed to exit its Brasov site in Romania from its network, following the conclusion of a recent review of the solid dose activities across the GSK’s manufacturing network. The proposals were developed after taking into account the manufacturing overcapacity in the current GSK oral solid dose manufacturing network.

GSK has experienced a significant decline in solid dose volumes over the last years and many of the established solid dose products will continue to decline in the next five years. The current manufacturing capacity in Brasov is underutilised and unfortunately there is no long term growth potential for further products or volumes to be manufactured here. It is intended that manufacturing activities at Brasov will be transferred to other sites.

For a 6 month period, the company will explore if there is an opportunity for selling the site to a third party buyer with a short term transitional supply agreement, to transfer in a short period of time the production to other GSK facilities and to start production of the buyer’s products. If no buyer is identified at the end of this period, GSK would regrettably progress the closure of the site. Production in Brasov will continue until the entire production is moved to other facilities, but not later than the second half of 2015.

If no buyer is identified, GSK will do all it can to help staff through this difficult period. GSK sincerely regrets the potential impact of this decision on the employees. As always, GSK will treat employees fairly and, if the proposal is implemented, the company will provide the appropriate support for those leaving GSK employment.

“This decision is not in any way related to the performance of the site; nor is it indicative of a de-investment from the Romanian market. It is only a consequence of patent expiries that have led to over capacity for oral solid dose products without prospects for significant increase in future volumes. GSK remains committed to the Romanian market where we will continue to employ over 650 employees between its pharmaceuticals and distribution operations and plan to invest 8 to 10 million Euro in research and development in the next 5 years,” said Pascal Prigent, General Manager of GSK Romania.

GSK is constantly reviewing the balance between supply and demand within the network for all its sites. It is critical to constantly improve the effectiveness and productivity of its operations to meet the challenges of the increasingly competitive business environment facing the whole of our manufacturing network.

The resulting impact on the site’s future competitiveness has resulted in the decision of selling the site or the phased closure proposal, if no buyer is identified by 6 months.

“The proposals are absolutely no reflection on the performance of staff at Brasov who over the years have played a key role in the success of GSK through their professionalism and commitment in manufacturing medicines for patients all around the world”, said Mariana Cismaru, Brasov Site Director.

GSK has thoroughly evaluated a number of other options for the site before proposing the exit of the Brasov site from its manufacturing network and it was with great regret that it was concluded that there was no alternative for GSK than to propose the exit of the Brasov site from the GSK manufacturing network.

The Brasov site was opened 20 years ago and manufactures a range of medicines, from treatments of HIV/AIDS to respiratory diseases and anti-depressive drugs or products for cold/flu and inflammatory.





GSK proposes to exit Brasov site from its manufacturing network, and is searching for a third party buyer

• GSK proposes to exit the Brasov site from its manufacturing network, following the conclusion of a recent review of the solid dose activities across the GSK’s manufacturing network, as a consequence of the current overcapacity in the company’s oral solid dose manufacturing network.

• For a 6 month period, GSK will explore if there is an opportunity for selling the site to a third party buyer with a short term transitional supply agreement.
.....................................................................................................................................................

GlaxoSmithKline (GSK) regrettably has proposed to exit its Brasov site in Romania from its network, following the conclusion of a recent review of the solid dose activities across the GSK’s manufacturing network. The proposals were developed after taking into account the manufacturing overcapacity in the current GSK oral solid dose manufacturing network.

GSK has experienced a significant decline in solid dose volumes over the last years and many of the established solid dose products will continue to decline in the next five years. The current manufacturing capacity in Brasov is underutilised and unfortunately there is no long term growth potential for further products or volumes to be manufactured here. It is intended that manufacturing activities at Brasov will be transferred to other sites.

For a 6 month period, the company will explore if there is an opportunity for selling the site to a third party buyer with a short term transitional supply agreement, to transfer in a short period of time the production to other GSK facilities and to start production of the buyer’s products. If no buyer is identified at the end of this period, GSK would regrettably progress the closure of the site. Production in Brasov will continue until the entire production is moved to other facilities, but not later than the second half of 2015.

If no buyer is identified, GSK will do all it can to help staff through this difficult period. GSK sincerely regrets the potential impact of this decision on the employees. As always, GSK will treat employees fairly and, if the proposal is implemented, the company will provide the appropriate support for those leaving GSK employment.

“This decision is not in any way related to the performance of the site; nor is it indicative of a de-investment from the Romanian market. It is only a consequence of patent expiries that have led to over capacity for oral solid dose products without prospects for significant increase in future volumes. GSK remains committed to the Romanian market where we will continue to employ over 650 employees between its pharmaceuticals and distribution operations and plan to invest 8 to 10 million Euro in research and development in the next 5 years,” said Pascal Prigent, General Manager of GSK Romania.

GSK is constantly reviewing the balance between supply and demand within the network for all its sites. It is critical to constantly improve the effectiveness and productivity of its operations to meet the challenges of the increasingly competitive business environment facing the whole of our manufacturing network.

The resulting impact on the site’s future competitiveness has resulted in the decision of selling the site or the phased closure proposal, if no buyer is identified by 6 months.

“The proposals are absolutely no reflection on the performance of staff at Brasov who over the years have played a key role in the success of GSK through their professionalism and commitment in manufacturing medicines for patients all around the world”, said Mariana Cismaru, Brasov Site Director.

GSK has thoroughly evaluated a number of other options for the site before proposing the exit of the Brasov site from its manufacturing network and it was with great regret that it was concluded that there was no alternative for GSK than to propose the exit of the Brasov site from the GSK manufacturing network.

The Brasov site was opened 20 years ago and manufactures a range of medicines, from treatments of HIV/AIDS to respiratory diseases and anti-depressive drugs or products for cold/flu and inflammatory.

Members & Partners about AmCham

Members 2 members

See all
2017 USA Trade Guide 2017 USA Trade Guide
Member of the AmChams in Europe Network Member of the AmChams in Europe Network
Coalitia pentru Dezvoltarea Romaniei Coalitia pentru Dezvoltarea Romaniei
U.S. Business Visa Facilitation Program for AmCham Romania Members U.S. Business Visa Facilitation Program for AmCham Romania Members
U.S. Commercial Service U.S. Commercial Service