Sicomed Bucharest, the largest Romanian drugs producer, will this year finalise the restructuring and investment programme it initiated in 2000. The company will reduce its personnel to about 900, from the current 1,150 employees. In 2003, this figure stood at 1,670. It will also invest 10 million dollars in reorganising production activities and modernisation.
At the same time, Sicomed is anticipating a 17% increase in sales for 2004, bringing the total to $54 million. The company also plans to double its sales during the 2003-2006 period. It already posted a 22% rise last year, registering total sales of $46 million.
"The sales increase projected for the following period will be supported by the launch of some new products; by promoting drugs included in the company's current portfolio; by raising the average price levied per unit sold; and by expanding exports. Future investments will be mainly aimed at the development of new products, the continuous modernisation of production facilities and personnel training," stated Klaas Postema, Sicomed executive chairman.
Over the period 2000-2003, the main target for Sicomed's investment programme was to reach GMP standards for all important production units. Investments amounted to 24 million dollars, the only section falling short of completely reaching GMP standards being perfusion drugs.
"Investments made in 2004, standing at 10 million dollars, will be used to reduce the company's operational area from an initial 40-50 hectares to 5 hectares, making use of advances in technology, as well as the further modernisation of buildings and offices," says Dan Vasile, Sicomed's operational deputy chairman.
The programme, aimed at cutting down the company's personnel in order to raise productivity and efficiency, was initiated in 2003, when the company included around 1,700 employees. The company has so far laid off about 500 employees who received compensatory financial packages and support in finding new jobs.
"About 80% of the personnel made redundant have already found other jobs with our help. We were also aided by the fact that Bucharest has the lowest unemployment rate in the country, with several labour force absorption possibilities. We will continue to very carefully pursue our personnel restructuring programme, the final target for year 2004 being a level of 900 employees," Postema specified.
laurentiu.ispir@zf.ro
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