STEEL CONSTRUCTIONS. Estonian Pharmadule Plans to Expand Production

08 Jun 2011 • by Natalie Aster

Pharmadule OU, the former subsidiary of the bankrupted Swedish pharmaceutical modules producer Pharmadule AB, bought out of the receivership by its Estonian management (see no 315 page 2), plans to offer a wider scope of manufacturing services.

"We continue with the current production – the modules for pharma industry – in some extent, but are expanding our scope in order to serve also other fields of business besides pharma," says Raul Hallap, CEO of Pharmadule OU, to news2biz.

"We have two major strengths – first, we are skilled builders of modules based on steel frames, and second, our production is up to high standards of pharma industry. The latter means that our production quality most definitely complies with the demands of food industry, chemicals production, etc.," adds Hallap.

Recently, Estonian Pharmadule kept its business afloat by building modular boiler houses for the Swedish market. Now, it has signed one major contract regarding more sophisticated production and has several similar contracts in the negotiation phase, according to Hallap.

In marketing its services and produce, the Estonians have recently used the contacts established at the times the firm was a subsidiary of the Swedish Pharmadule.

"We were absolutely dependant on our Swedish parent previously. They supplied us with orders, sold our production and provided all engineering and design," says Hallap. "Now we have to cope on our own. We plan to use the Estonian engineering companies, but eventually, we want to establish our own development unit. It is quite hard, though, as for instance, it is hard to find Estonian engineers at home with the designs used by pharma industry."

One remaining issue is the company name, because the brand name Pharmadule was acquired from the receivership by a different company. "At the moment we produce as Pharmadule, because it is the registered name of the Estonian company. But it may change in the future – depends how we will manage to solve the brand problem," comments Hallap.

In its top year, 2008, Pharmadule employed 127 in Estonia. Since then, the employment decreased gradually every year along with shortage of orders. In April this year, the company finished a restructuring process, leaving 32 jobs. "There is a chance that we might need to start hiring again soon," says Hallap.

Pharmadule OU turned over EUR 7.6m in 2009, a drop by 30.4% compared to the previous year, while posting a profit of EUR 0.4m. For the year of 2011, Hallap expects the company's turnover to reach up to EUR 3m.

The above news abstract has been taken from a bi-weekly newsletter to professionals doing business in Eastern Europe "news2biz – Manufacturing".

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