He said workforce costs in Romania are at one third compared to those in countries where the pharmaceutical products are made.
“We are extending our packaging units in Romania. If we look at the average workforce cost, it represents a third of the cost in countries where our products come from. The predictability of the business environment is also very important. An investment in production is a long term investment, so one needs to be certain the industry is predictable and a priority to the state. Looking at costs, Romania is convincing, but as far as predictability goes things are not so great,” said Townsend.
U.S. pharmaceutical company Pfizer recently announced it will invest $5.4 million in the packaging line of the Ferrosan supplements factory it owns in Cluj-Napoca. The company will transfer products packaged in Denmark and Italy to Romania.
Townsend said the factory packages non-prescription products and Pfizer seeks to expand its business there. He added 90% of the products packaged in Cluj are exported mainly to Russia, Asia and the Middle East, but also the EU.
Ferrosan is part of Pfizer’s global production and supply network and currently has a packaging capacity of 6 million boxes a year. The company plans to raise this capacity in the next three years. Pfizer also targets the expansion of storage space and works are estimated to be completed by the end of March 2015.
In 2011, Pfizer bought Danish company Ferrosan Consumer Healthcare from Altor.
Pfizer is the fifth largest pharmaceutical company on the Romanian market, with a market share of 5.1% at the end of the second quarter, according to Cegedim data.