Recipharm plans to discontinue manufacturing operations at its solid-dose manufacturing facilities in Stockholm and Höganäs, Sweden.

Since 2015, Recipharm has been implementing efficiency activities in its solid-dosage business in Sweden. These initiatives have included a reduction in headcount and the rationalization of low-profitability contracts. As part of this ongoing initiative to improve profitability and competitiveness, the company decided to discontinue activities in Stockholm and Höganäs.

Recipharm’s operations in the greater Stockholm area employ approximately 180 people and are specialized in the manufacturing of tablets. The company will explore the opportunity to close the facilities during the second half of 2019.

Recipharm’s operations in Höganäs employ approximately 45 people and are specialized in sachet and stick-pack filling, primarily for powders and granules. As part of the process, the company will evaluate different options for the facility. This will include divestment of the manufacturing site, with the intention to have discontinued its involvement in operations by the end of 2018 at the latest.

Negotiations with representatives of the employees will be initiated immediately with the expectation for a final decision regarding discontinued manufacturing operations in Stockholm and Höganäs to be made before year-end 2017.

As part of this activity, Recipharm will offer clients the opportunity to transfer manufacturing to other facilities in the group.

Source: Recipharm