Stada to place $50M+ investment in a new facility in Romania
While Romania may conjure up images of vast mountain ranges and tales of medieval kings, one generic manufacturer has broken ground on a new facility there.
German pharma company Stada said Monday that it has placed a €50 million ($51.9 million) investment into a 100,000 square-meter (1.08 million square-foot) site in Turda, Romania, a city in the Southeast of the country. According to a Stada spokesperson in an email to Endpoints News, the company has developed only 281,500 square feet of the site so far.
The site will act as a “supply-chain hub” and initially have nine manufacturing lines for producing medicines such as tablets and capsules and have the ability to supply 100 million packs per year. The facility will supply medicines for diseases such as diabetes, high cholesterol and hypertension.
The site will also aim to supply a multitude of products across Europe and will have significant warehousing capabilities.
The ultimate goal of the facility, according to the Stada spokesperson, is to grow the company’s presence and strengthen the security of medicines in Europe. The company expects to start operations at the facility by the end of 2024 and is expecting to hire around 375 workers.
The Stada spokesperson also told Endpoints that factors such as the pandemic and other challenges have shown that having a “robust” medicines supply chain in Europe is vital.
“Through this major investment, Stada is further strengthening its commitment to acting as a reliable supplier of medicines that support healthcare systems throughout Europe,” the spokesperson said to Endpoints.
The site in Turda is also close to Stada’s testing laboratories in Timisoara, Romania, and its production units in Serbia.
Supply chain issues have been bearing down on manufacturers this year as other events have disrupted the global landscape, including the lingering effects of Covid-19, the ongoing conflict in Ukraine and rising inflation.
A letter sent by Medicines for Europe, a group that represents the generic industry on the continent, which was addressed to energy ministers and commissioners concerning inflation and the costs of energy on the supply of generic medicines, detailed the hardships that manufacturers are facing. This includes raw material prices which have risen 50-160% and transportation rising to up to 500% in some cases.