Hungarian daily "Vilaggazdasag" reports that Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) may double capacity at its Hungarian plant in a $100 million investment to create Europe's biggest drug making unit.
The paper added, "The deal to expand Teva's existing plant in the eastern town of Debrecen is conditional on talks going on with the government about potential subsidies related to the investment. Teva, which has spent a combined $630 million on investments and R&D since launching its Hungarian operations ten years ago, may also consider other targets in central Europe for the capacity expansion. However, since Teva's European research and development centre is already based in Hungary, it would be a likely candidate for the deal."
Teva Hungary business development director Peter Gabor told "Interfax, "If the decision was made to build the factory here, it would make Hungary the top European manufacturing base of Teva. In fact this would be the single largest pill production site in all of Europe."
Teva currently has three manufacturing sites in Hungary: a plant in Godollo, outside Budapest, focuses on vaccine manufacturing and logistics operations; a factory in Sajobabony, built in 2005, specializes in active pharmaceutical ingredient (API) production; and the plant in Debrecen, which manufactures finished pharmaceutical pills.
Gabor told "Interfax" that a decision by Teva headquarters on the location of the new factory is expected in the near future, while Teva's Czech and Irish units are currently seen as Hungary's biggest rivals in securing the $100 million project. He added, "This is an investment that will be decided and prepared during this year. If Hungary wins the investment, serious works could start in 2009, while full production capacity at the new plant could be reached after another two to three years."
Gabor added that a factory of this size could employ 300-500 workers, adding to Teva's current Hungarian total of around 2,600 employees.
Teva Hungary CEO Andras Rozsa told "Interfax" that the company is also expanding its research and development activities in Hungary.
Teva has declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2008
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