Drastic staff cut in former Novartis Frankfurt plant

German daily Frankfurter Allgemeine Zeitung reported today that an 87% staff cut will be performed at the former-Novartis production facility in Frankfurt, acquired last year by investor ICIG. 250 of the 300 current employees will be dismissed, the staff trade unions said. The facility was built by Sandoz in 1998 to manufacture 7-ACA, a chemical intermediate for the production of antibiotics. Over the years, the price of 7-ACA has dropped to the extent that the facility is no longer internationally competitive. The owner (Novartis) consequently announced in 2015 it would close it down, yet the staff trade unions, together with the management of the entity controlling Höchst industrial park—where the plant is located—forced Novartis to look for a buyer. This was found in February 2015, when ICIG acquired all the assets of the plant. No manufacturing activity is probably ongoing in the site, since 7-ACA production has been relocated to the other subsidiary of ICIG—that is Corden Biochem. (Source FAZ)