OREANDA-NEWS  On 06 November was announced, that according to the concern development plans, the Management of Grindeks reviews ointment manufacturing and sales perspectives. Corresponding to the market research in the main target markets of Grindeks, the company forecasts that the demand of Grindeks ointments can double.

At the moment the daughter company of Grindeks in Estonia – Tallinn Pharmaceutical Plant is specializing in the ointment manufacturing. The plant currently manufactures six types of ointment products.

To satisfy the increasing demand for Grindeks ointment products, the company plans to build a new ointment plant, where manufacturing processes of Tallinn Pharmaceutical Plant could take place in the future. At the moment Grindeks evaluates financial aspects of the project and the establishment possibilities of the plant in Estonia or Latvia.

Chairman of the Council of JSC Grindeks Kirovs Lipmans emphasizes: “The ointments are one of the target directions with the development possibilities. Therefore we are thinking about options to develop a new ointment plant. Initially planned costs of the project were 4 million euros.  Sadly, in the background of the financial and economical crises, the project costs in Estonia have doubled and we are forced to suspend the project and to reevaluate the ointment manufacturing business development aspects for the future.”

During the financial and economical crises throughout the world Grindeks also considers all possibilities to optimize business costs. “To maintain the ointment plant in the center of Tallinn, Tondi street 33, is cost-wise expensive and ineffective for commercial activities.  If decision to move the manufacturing processes will be made, there will also arise a question about the development of this territory. To build a business center is one of the possibilities,” says Kirovs Lipmans.

Tallinn Pharmaceutical Plant is a manufacturer of national importance of Estonia. Founded in 1914, it is one of the largest pharmaceutical plants in the state. In 1998 JSC Grindeks bought majority of stakes of the plant. To improve the governance of the concern, optimizing the processes of the Tallinn Pharmaceutical Plant and to achieve strategic goals, Grindeks bought out all the shares of minority shareholders, becoming its unique owner in 2004.