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2008-10-31 Latvians may close Tallinna Farmaatsiatehas

It will be decided in next one and a half year whether they continue operating in Tallinn or not, Kirovs Lipmans, chairman of Latvia's largest drugmaker Grindeks, the main holder of Tallinna Farmaatsiatehas (farmaceutical plant) told dv.ee, aripaev.ee mediates.

“I’d really want to keep the factory. It’s all depending on how expensive will be building a new factory to Lasnamäe industrial park and on government’s wish to keep one big production and vacancies in Estonia,” Lipmans, who is one owners of Latvian pharmacy group Grindex, said.

Couple of years a go Grindex got an acceptance from city officials for building a multi-storey complex to pharmacy factor’s territory on Tondi street. Wishing to keep the production as well, company’s management decided to build a new factory to Lasnamäe industrial park. The land was bought in 2006. In 2007 they found a main contractor and works were supposed to start any minute, but the process got stuck.

“It’s all behind money. At first we agreed with contractor that the building would cost EUR 4 mln, but by now the amount has doubled. If we can’t find another contractor in 1,5-2 years then unfortunately we have to close the factory and move production to Riga.”

A factory in Riga would cost only EUR 2.5 mln. The amount is so small, because company has a production corpus in Riga which only needs renovating.

Lipmans admitted he don’t want to close the production in Tallinn for it’s no good to large company’s reputation.

“I’ve secured my welfare so I’m not that businessman, who only thinks of profit. For me public opinion is important, company’s blooming. I understand the factory is very important for Estonia and Tallinn. Besides historical importance the company gives work to many people,” Lipmans said.

He asked for government’s help last year and government replied:” We have to think.”

“There was no constructive dialogue. As an entrepreneur I understand them – someone stranger came to ask for money. Now it’s too late, the crisis is here,” Lipmans said.

Source: www.balticbusinessnews.com