German pharmaceutical giant Stada Group will ramp up drugs production at both its Vietnam factories and significantly boost exports to Europe, says CEO Peter Goldschmidt.
Vietnam would serve as a supply hub for the group in the future, he said Wednesday at the opening of Stada Vietnam’s new head office in Ho Chi Minh City.
“We employ 2,000 dedicated people in Vietnam, which is our most important market in Asia,” he noted.
Both factories of the group are located in the central province of Phu Yen. The newer one, called Stada Plant, has European Union Good Manufacturing Practices (EU-GMP) certification for all production lines; while the first one, Pymepharco, has the certification only for some parts.
“We’ll continue to invest and expand our business in Vietnam,” Goldschmidt said.
Stada Vietnam is poised to send its first shipment to Europe this November.
The newer plant’s annual capacity of 1.5 billion tablets will serve the company’s European export plans, Stada Vietnam TechOps head La Quang Hoa told The Investor. It will increase to four billion in the years to come.
The first plant has an annual capacity of 1.4 billion tablets, he added.
Hoang Cong Duc, head of the company’s site supply department, said the shipment planned to Europe in 2024 is 90 million tablets and this will increase to 2.5 billion by 2026.
He told The Investor that the Stada tablets made in Vietnam will be transported to Germany, Romania, and Serbia, from where they will be distributed in European markets.
Outlining the group’s future plans in Vietnam, Goldschmidt said that both plants will also launch a broad range of consumer healthcare products and further develop the production of generic drugs.
“The two plants are dedicated to expanding the export of high quality made-in-Vietnam products to Europe and continue to ensure affordable access to essential medicines for the Vietnamese people,” Goldschmidt said, adding that this would foster pharmaceutical growth in the country.
“The new Stada Vietnam plant will play a crucial role in avoiding shortages in Europe based on the dedication and strong engagement of our highly-qualified Vietnamese employees,” he emphasized.
Vietnam has around 2000 of the group’s 13,000 employees the world over.
Stada’s Vietnam investment commitment “serves as compelling evidence that Vietnam represents a favorable and appropriate destination for high-value production within an ambitious industry,” said Marko Walde, chief representative of AHK, the German Chamber of Commerce, for Vietnam, Myanmar, Cambodia and Laos.
It also showed how the EU-Vietnam Free Trade Agreement facilitates and encourages German investment in Vietnam, he added.
At the Wednesday event, Stada Vietnam donated an artificial kidney filtration machine to the Phu Yen General Hospital.