Pfizer, Sandoz to close Thane plants to consolidate operations

Two major MNC pharmaceutical companies have announced plans to discontinue production at their plants in Thane, near Mumbai amidst signs of a fresh wave of consolidation by multinationals across the industry.

A week after Sandoz's July 10 announcement that it is beginning the process of closure of its Turbhe plant, Pfizer today announced that it was in the final stages of closing down its Thane facility.

Sandoz, the generic division of Novartis, employs 170 associates at its Turbhe plant, which manufactures antibiotics and APIs. The company plans to discontinue operations at the site from December 2016.

Pfizer will shut its manufacturing plant in Thane from 16 September this year, the company's spokesperson said in a statement today. The announcement comes less than a week after Sandoz,

Pfizer had, last year, offered a voluntary retirement scheme (VRS) to employees at the plant, upon their request and 132 out of 212 workers had taken the option, according to the company. The remaining 80 workmen, who continued to receive full wages despite plant inactivity, would also receive requisite compensation as mandated by law, it added.

According to Pfizer India spokesperson, the Thane plant has been idling since 2013, with practically no production at the plant, and the closure of the site would not impact supply of medicines.

The Thane plant, commissioned in the 1960s, used to manufacture medicines for both domestic and international markets.

Both plants are older facilities and closure of these units point to greater consolidation and cost reduction by the MNCs as they step up competition in the fiercely competitive pharmaceutical sector.

Pfizer India's statement attributes the decision to 'an assessment of its long term viability and its ability to achieve the needed production.'

While announcing the closure plans on 10 July, Vivek Devaraj, Sandoz Country Head in India, said, ''We made the announcement to ensure our associates are informed as soon as possible about our decisions and to ensure a transparent process.''

Sandoz, he said, is ''committed to managing the process with the utmost care, sensitivity and respect for all impacted associates at Turbhe, to supporting our customers through the transition and to meeting patient needs for access to important medicines.''

Manufacturing would now focus at its other sites which employ over 1,300 associates and produce over three billion tablets and 180 tonnes of API annually.''