Vienna, May 18, 2004 - Sandoz, the world's second largest supplier of generic medicines, is expanding its global production network with the opening of three new plants this month in Poland, India and Romania. The USD 80 million total investment will boost production capacity by three billion tablets and capsules, while creating approximately 500 jobs.
"Global presence in key markets is vital for competitiveness," says Christian Seiwald, CEO Sandoz. "These new plants put us in a better position to deliver high quality products promptly to our customers and increase our cost competitiveness."
All three plants will contribute substantially to meeting the increasing need for quality generic products and will support the continued growth of Sandoz.
The new production and logistics facility in Strykow, Poland, 20 km from Lodz, was built by Lek, the Slovenian Sandoz subsidiary. Opened on May 12, the plant is one of the largest investment projects of the pharmaceutical industry in the country, taking 1.5 years to complete. The Strykow plant includes an administration building, laboratories, production lines and storage centers. Focused on the production of oral solids, it is designed according to the latest GMP standards and guidelines and will provide products for the entire European market. The new facility is expected to create 150 new jobs. With the addition of the new plant, Lek will have a total of 500 employees in Poland.
The new Sandoz production plant in Kalwe, a suburb of Mumbai, was built in 16 months and will open on May 18. The plant will produce oral solids to supply world-wide markets. The new facility will be approved by both European and US public health authorities. With a staff of 200 working in the new plant, Sandoz will increase its total headcount to around 1,200 employees in India.
The Targu Mures production site in Romania, 360 km from the capital Bucharest, was built by Lek, the Slovenian Sandoz subsidiary. The construction took 1.5 years to complete and the plant will be inaugurated on May 25. Over 140 people in total will work in Targu Mures in all production and support activities supplying Antibiotics for the European and East European market. Including the new plant, Lek will have approximately 230 employees in Romania.
Company Information
Sandoz, a Novartis company, is a world leader in generic pharmaceuticals and develops, manufactures and markets these medicines as well as pharmaceutical and biotechnological active ingredients. Decades of experience and profound know-how make Sandoz a renowned partner in the Franchises Pharmaceuticals, Biopharmaceuticals and Industrial Products. Altogether, Sandoz employs around 13,000 people worldwide and posted sales of USD 2.9 billion in 2003.
Novartis AG (NYSE: NVS) is a world leader in pharmaceuticals and consumer health. In 2003, the Group's businesses achieved sales of USD 24.9 billion and a net income of USD 5.0 billion. The Group invested approximately USD 3.8 billion in R&D. Headquartered in Basel, Switzerland, Novartis Group companies employ about 78,500 people and operate in over 140 countries around the world. For further information please consult http://www.novartis.com.
This release contains certain "forward-looking statements" relating to the Group's business, which can be identified by the use of forward-looking terminology such as "coming on stream", "will be", "to become", or similar expressions, or by express or implied discussions regarding strategies, plans and expectations. Such statements reflect the current plans or views of the Group with respect to future events and are subject to certain risks, uncertainties and assumptions. Management's expectations could be affected by, among other things, competition in general, and other risks referred to in Novartis AG's Form 20-F on file with the US Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected.
