Pharmaceutical firm announces test results for new medication. - Merz shuts down facility in Hesse and transfers operations to Dessau.
A pharmaceutical company called Merz will shut down its facility in Reinheim, Hesse, and shift production to their site in Saxony-Anhalt. Merz has confirmed that they're taking the necessary steps to close the Reinheim plant and move operations to Dessau within a couple of years. The Darmstadt Echo reported this earlier. Around 230 jobs are impacted by these plans, according to the Darmstadt-Dieburg district administration. Merz is well-known for its brands Tetesept and Merz Spezial Dragees.
This news came as a shock to the district administration. The closure of the plant means a loss of nearly two million euros in business taxes for the city, as per a statement from the Hessian district. Every effort was made to make it possible for the company to construct a new factory at the original location. Merz has been producing in Reinheim since 1964.
However, Merz has decided to reassess the project. The Reinheim premises are not suitable for a new packaging plant in the long-term. Similarly, modernizing the existing production plant is not financially feasible, the company spokeswoman explained. Merz has been running a production site in Dessau for quite some time now. The consolidation there streamlines the logistics chain and permits higher flexibility to adapt promptly to a continuously evolving market. They're currently in talks with the labor unions to guarantee a socially acceptable transfer from Reinheim to Dessau.
Dessau-Roßlau hosts the Biopharmapark, where numerous major pharmaceutical companies operate. Along with Merz, the vaccine manufacturer IDT Biologika is also situated there. Two years ago, Merz invested roughly 40 million euros in the Dessau-Roßlau site.
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- The closure of Merz's facility in Reinheim, Hesse, will impact around 230 jobs, as mentioned by the Darmstadt-Dieburg district administration.
- Merz has a production site in Dessau, Saxony-Anhalt, where they're looking to consolidate operations and improve logistics flexibility.
- The announcement of Merz transferring operations from Hesse to Dessau was reported by the Darmstadt Echo, causing a shock to the district administration.
- Merz is not able to construct a new factory at the Reinheim location due to unsuitable premises for a new packaging plant.
- Dessau-Roßlau is home to the Biopharmapark, where Merz joins other major pharmaceutical companies like IDT Biologika, who has also invested significantly in the area.
Source: www.stern.de
