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The Menarini Group invests €150 million for a new plant in Italy

The Menarini Group has decided to stop searching for an attractive international location for the construction of its new plant and to help Italy’s economic recovery. With a name linked to the relaunch of Italy and under the sign of Industry 4.0, the modern factory will produce drugs for millions of people around the world. The investment will amount to $169 million (€150 million).

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After closing 2019 with a turnover of over $4.17 billion (€3.7 billion), Menarini chose Italy for its new $169 million (€150 million) plant, which will be built in Florence. The plant, which will mark Italy’s desire to start running again after quarantine, will be the most modern and one of the largest in the Group, founded in 1886 in a Neapolitan pharmacy, the Menarini International Pharmacy.

Find out more details about the new plant that the Menarini Group plans to build in Italy and read the most important economic news in the world with our companion app Born2Invest.

The Menarini Group wants to help Italy economically recover from the COVID-19 crisis

The decision to stop the search for the most economically attractive international location, and to favor Italy, has in fact matured during the dramatic days of the lockdown, when the tragic consequences of the pandemic on the Italian economy began to become evident: “We have made a heartfelt decision, shared with the Board of Directors: to favor our country, and to do so immediately, with an investment of $169 million (€150 million) that will immediately contribute to the economy and employment,” commented Lucia and Alberto Giovanni Aleotti, shareholders and members of the Menarini Board. “We are an Italian company and we are proud to be one. Here we will produce drugs that are the essence of the Menarini Group, used every day by tens of millions of patients in Italy and abroad.” 

The site will be built in the Florentine area, occupying 40,000 square metres and will employ 250 people directly and 250 people in the supply chain. It will be a smart manufacturing plant, with innovative production technologies and automation and digitization systems in line with the Industry 4.0 program with important objectives of environmental sustainability. 

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The plant will have an annual production capacity of about 100 million packs, corresponding to about 3 billion tablets, and will bring the desire to relaunch the company, thanks to a special initiative: “This plant will have a name, a bit like a child,” continued Lucia and Alberto Giovanni Aleotti. “Our employees will choose it. A name that sums up the courage, the will and the heart of Italy that wants to get up and work as a team in the most difficult moments.”

The company’s growth was driven by international markets

The Menarini Group, which has recently announced the purchase offer for the US biotech company Stemline, closed 2019 with an increase in accounts compared to 2018. Sales were close to $4.28 billion (€3.8 billion) up 3.2% compared to 2018, and Ebitda amounted to $554 million (€492 million). 

The growth was driven by international markets despite the patent expiry of Adenuric (febuxostat), a drug for hyperuricemia. “The year that ended was obviously not affected by the COVID-19 crisis, and saw Menarini increase its presence abroad and strengthen its governance with the appointment, in September, of the Group’s CEO, Elcin Barker Ergun.

“At the moment, international sales account for 77% of the total thanks to the dedication and commitment of our employees, who bring the quality of Menarini’s medicines to the world,” commented Eric Cornut, Chairman of the Menarini Group.

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(Featured image by vrolanas via Pixabay)

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First published in affaritaliani.it, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.