Technophar, $36m in pharmaceutical equipment

Technophar company, owned by businessman Herman Victorov, a Romanian-born Canadian citizen, is going to invest approximately $36 million (28.2 million euros) to develop a new production facility for machines manufacturing pharmaceutical capsules.
Technophar entered the domestic market in 1991 and has two operational production and distribution centres, in Odorheiu Secuiesc (Harghita county) and Cornu, Prahova county, with the third one due to be opened in Chitila.
“Initial investments in the centre of Chitila will amount to 16 million dollars (12.5 million euros), with the project to reach 36 million dollars in a subsequent phase. The facility will become operational in the first quarter of next year,” Herman Victorov, chairman and CEO of the company headquartered in Ontario, Canada, told ZIARUL FINANCIAR.
The company is present with its own stand at the 32nd edition of the Bucharest International Technical Fair, hosted by Romexpo exhibition complex. Technophar firm was founded in 1984 and holds research & development, production and distribution centres in Canada and Romania, with almost entirely Romanian personnel.
The company manufactures machines producing hard pharmaceutical capsules, as well as soft capsules, for medical and self-care use.
Sale prices for such equipment can go as high as 1.5 million dollars (1.2 million euros) in the case of hard capsules, while prices for machines producing soft capsules range between 450,000 and 800,000 dollars (360,000 and 640,000 euros).
The firm has so far invested 24 million dollars (over 19 million euros) in its two production centres. The first investment was started in 1991 in Prahova county and is now handled by Romcan, one of Technophar’s units. Romcan last year derived turnover standing at 3.5 million dollars (2.75 million euros).
The second investment led to the creation of a new unit, Micron, which has been operational on the domestic market since 1998.
Micron in 2005 reported turnover worth 4.5 million dollars (3.5 million euros) and a profit margin of 10-12%.
The two plants Technophar owns in Romania have 190 employees, with the number expected to rise significantly after the third production unit is opened. The plant of Chitila will create 90 jobs at first, with the number of jobs being set to climb to 150.
Technophar has over 360 employees in Canada, of whom 90% are of Romanian origin. Globally, Technophar’s turnover stands at $22 million (18 million euros), with a 10% profit margin.
On the Romanian market, machines producing hard capsules were acquired by Gelcap. The market where the Canadian company derived the biggest sales is China, with a number of 67 machines for hard capsules and 3 for soft capsules being delivered to customers.