Zentiva Bucuresti Eyes Higher Exports In Four-Year Plan

05.06.2011 By Andrei Circhelan

Romanian drug maker Zentiva (SCD.RO), part of Sanofi-Aventis, plans to increase exports 7.5 times by 2015, while production should increase by 30% in the same interval.

The company has resumed export activities in March, after a five-year interruption period.

"Five years ago, we were exporting local production. Now, we are brining in products from various sites, to produce in Romania. (…) It is more efficient to produce medicine in Bucharest than at various partners in Europe and Asia," Sanofi-Aventis country manager Dan Ivan told a news conference Friday.

This year, the company plans to export some 2 million units, worth some EUR2-3 million, to Germany and the United Kingdom.

The company's local medicine factory (former Sicomed) had a capacity of 50 million units last year, up 20% compared to 2009, and a portfolio of 60 products. The company now plans to expand production by 30% until 2015, to 65 million units, while exports should reach 15 million units, mainly to France, Germany, the UK, Portugal and Italy.

Ivan added the company has reduced its costs by 40% last year, after laying off 84 employees, renegotiating contracts with suppliers, improving fabrication processes and reducing energy consumption in the factory.

Zentiva now has 400 employees.

This year, the company will invest EUR2 million in upgrades and the purchase of new equipment.

The EUR4.7 million investment budget earmarked for this year also includes EUR800,000 for a laboratory.

French group Sanofi-Aventis, the world's fourth largest drug maker in terms of sales, holds the majority stake in Zentiva Romania (SCD.RO), after buying the Czech group Zentiva in the first quarter of 2009.

The Sanofi-Aventis group manages two distinct operations in Romania, Sanofi-Aventis Romania SRL and Zentiva SA, keeping the brands separate.