†rsrapport Nycomed - Takeda Pharmaceuticals International GmbH

BUSINESS DESCRIPTIONMANUFACTURING OPERATIONSThe Board decision to go ahead with the restructuring of the group's Nordicmanufacturing organisation and the initiation of the implementation phase, wereevents that profoundly occupied the Nordic manufacturing organisation in 2000.The decision to restructure was made in line with the group's strategy to adaptto the rapidly changing pharmaceutical market. Moreover, there is an increasingdemand for our largest product CalciChew ® , while some other more traditionalproduct volumes are stabilising. Together with overall price pressure, these constitutethe major driving forces behind the decision. Pursuant to the decision, theexisting manufacturing facility in Asker, Norway is being upgraded and renovatedto be a state-of-the-art streamlined calcium facility. An investment of more thanDKK 100 million has been approved, with upgrading to take place over the nextcouple of years. The Oslo plant is gradually being closed down with the productscurrently manufactured there being transferred to other Nycomed operations oroutsourced. A partner is being sought to take over the Elverum plant in Norwayand will be sought to take over the Helseholmen plant in Denmark. Restructuringwill resolve in a reduced workforce in Norway of about 200 individuals.In 2000 we also focused on the development of an operations strategy for thefuture. Our customers must be serviced with products at the right time, at theright price and of the right quality. As our customers have no interest in wherethe products are produced, we are organising manufacturing according to theseprinciples. The most difficult task will be to reduce the complexity of our presentmanufacturing structure and also to separate the production of consumer productsfrom the production of pharmaceuticals. A 10-point action programme hasbeen defined to fulfil the overall strategy.Product pruning is an ongoing activity that supports the above-mentioned actions.Based on an Activity Based Costing tool, the least profitable products orproduct families are being de-listed on the Danish and Norwegian markets andthose markets which are covered by International Sales.–33–