Expansion and modernization of the final dosage forms plant was performed within 2 years and a total of LVL 9.1 million were invested in it, incl. LVL 6.4 million invested in construction and LVL 2.7 million – in technological devices and equipment. Establishment of the plant was financed from the funds obtained in the share issue in 2005, as well as attracting bank resources in the amount of LVL 2.5 million (EUR 3.6 million).

President of the Republic of Latvia V.E. Valdis Zatlers, Minister of Economics of the Republic of Latvia Kaspars Gerhards, Minister of Health of the Republic of Latvia Ivars Eglitis, Minister of Finance of the Republic of Latvia Atis Slakteris, Chairman of the Council of JSC Grindeks Kirovs Lipmans, Chairman of the Board of JSC Grindeks Janis Romanovskis, Ambassador Extraordinary and Plenipotentiary of the Russian Federation V.E. Aleksandr Vesnyakov, Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China V.E. Cheng Wenju, Ambassador Extraordinary and Plenipotentiary of the Republic of Belarus V.E. Aleksandr Gerasimenko, as well as Latvian and foreign cooperation partners of Grindeks participated in the opening of the plant.

President of the Republic of Latvia Valdis Zatlers remarked in his speech: „Grindeks has not only become a brand for Mildronatete® and Ftorafur®, Grindeks has become a brand for the quality: Good Manufacturing Practice, ISO certificate. Grindeks has become a brand for the export of Latvia, Grindeks has become a brand for socially responsible entrepreneurship. Grindeks is one of the brands of Latvia.”

Chairman of the Council of Grindeks Kirovs Lipmans emphasized in his speech: “The investment of more than LVL 9 million is a substantial contribution to development of the concern that will increase competitiveness of Grindeks in the European and world markets. Development of industrial production and export in Latvia is important for me as a shareholder and also a citizen of Latvia. The newly-constructed world-level pharmaceutical plant will provide great yield not only to the concern, but also to competitiveness of Latvia, improvement of the national economy, as well as facilitate increase in exports of the country.”

Kirovs Lipmans acknowledged that the cooperation between Grindeks and state institutions strengthens and also invited the government representatives to solve the issues concerning manufacturers with greater responsibility and quicken the process of making decisions regarding “High Value-Added Investment” programm.

Kirovs Lipmans explaines that production is one of the operation priorities of Grindeks. Investment in the modernization of infrastructure and technological equipment has been made so that to increase productivity and production capacities. 1.5 billions of tablets and 500 millions of capsules per year will be possible to produce in the new final dosage forms plant and it will be capable of meeting the demand for Grindeks medications, which annually increases by 20% on average.

“Sustainability and development of Grindeks are largely related to the interest of shareholders, especially the interest of Kirovs Lipmans regarding making investment in the concern, the wish to develop pharmaceutical production in Latvia and increase competitiveness of the country in the international arena”, said the Chairman of the Board of JSC Grindeks Janis Romanovskis in his speech. He acknowledged that the new final dosage forms plant is a substantial step in development of the concern which will considerably expand competitiveness of Grindeks.

Swedbank (de jure JSC Hansabanka until the spring of this year) having successful cooperation with Grindeks for almost 10 years, appreciates the establishment project of this plant and has granted a long-term loan to it in the amount of EUR 3.6 million (LVL 2.5 million).

Irina Pigozne, Deputy Chairperson of the Board of Swedbank and Head of the Corporate Service Department thinks that the new plant will promote the growth of competitiveness of Grindeks in the next years: “Success is always favourable for those who act. The conditions may be different but only by taking action it is possible to turn them to our advantage. By combining power, knowledge and a clever view in the future, the Latvian concern has managed to create the potential which will be competitive not only in the Latvian and European market, but also in the world markets”.

The project of the new plant was developed by the Polish company LSMW. General contractor of the construction works of the plant was the Latvian construction company RBSSkals.

Edgars Strauss, Chairman of the Board of JSC RBSSKALS: “Construction of the new final dosage forms plant was both, a challenge and manifestation of professionalism and project management abilities for our company. As design constructors, we may declare that the new Grindeks final dosage forms plant is one of those our implemented projects by which we may be particularly proud. Special engineering solutions and technologies previously not applied within the Latvian practice were used in construction of the plant so that to meet all the standards set for final dosage forms plants. The excellent result was achieved due to mutual professional cooperation between the customer and contractor enabling to implement the project in appropriate quality and terms.”

The total area of the plant after implementation of the project is 5500 m². The production processes in the new plant are organized in accordance with the requirements of the Good Manufacturing Practice and ISO quality standards generally guaranteeing reliability and quality of the produced medications. A modern automatic control system has been mounted in the new plant checking the microclimate in the premises, operation of the engineering systems, as well as controlling other production processes and considerably economizing energy resources, while the modern and high-powered technological equipment ensures convenient, safe, efficient and environmentally friendly production.

A total of 102 employees will work in the new Grindeks final dosage forms plant, namely, qualified and experienced production operators, engineering technical specialists, pharmacists and chemists supervising the production process of pharmaceutical products. In addition,10 employees were engaged for the work in the new plant.

About Grindeks

JSC Grindeks is the leading pharmaceutical company in the Baltic states. The main directions of its operation are research, development, production and sale of brand products, as well as generic and active pharmaceutical ingredients. Grindeks specializes in the heart and cardiovascular, psychotropic and anti-cancer therapeuctic groups of medications.

The portfolio of Grindeks products consists of a successful combination of brand products and generic medications including such brand products as Mildronate® and Ftorafur®, as well as more than 100 effective and safe forms of generic medications.

Grindeks concern consists of four subsidiary companies in Latvia, Estonia and Russia; as well as representatives and representative offices in 14 countries. Products of the company are exported to more than 40 countries and its export comprises more than 96% of the total turnover. The main markets are the Baltic states, Russia and other CIS countries, as well as Japan and USA. The shares of JSC Grindeks are listed in the Official List of Nasdaq OMX Riga.

Contacts:

Laila Kļaviņa
Head of the Communications Department
JSC Grindeks

Phones: (+371) 67083370, (+371) 29256012
fax: (+371) 67083505
E-mail: laila.klavina@grindeks.lv