Nycomed ‘optimises’ manufacturing network in Europe

Nycomed has announced a new network structure for its manufacturing in Europe which aims to boost its competitiveness.

Production from the company will now come from five centres of competence and five regional supply facilities in order to guarantee a high level of customer service.

It said production which currently comes from two Danish sites and its Finnish plants would be transferred to the other sites, with these changes to affect around 250 members of staff.

The company said its Denmark operations would be downsized and focus on regional and local supply, while it has entered into negotiations to sell its Finnish manufacturing facility.

According to Nycomed, the goal of these structural changes are the development of a best-in-class mid-sized healthcare company that is prepared for future challenges.

Barthold Piening, executive vice-president operations of the company, said: “Our decisions to restructure our manufacturing network will allow Nycomed to remain competitive in a tough market environment, where pressure on costs and fast market introduction has become critical.”

He added this change is regrettably not possible without a reduction in a number of positions which are necessary for the long-term success of the company.

Mr Piening said the company is determined to act in a socially responsible and fair manner.

Earlier this month, Nycomed announced its financial results for the first half of the 2008 fiscal year, reporting a fall of 3.4 per cent in net turnover year-on-year to 1,714.5 million euros (1,353.4 million pounds).