The management of the Cluj-based company Farmec SA, a manufacturer of cosmetics, has announced it will give up plans to relocate the factory to Dezmir.
This will entail a reduction in the investments for the 2006-2010 period by approximately 10 million euros, although an investment of 20 million euros in the relocation, upgrade and retooling of the production facility in view of EU accession had been announced last year.
"After conducting a number of feasibility studies, we arrived at the conclusion that relocation was no longer profitable and decided to invest in the current location instead," stated Liviu Turdean, the company's general manager.
The total investment for 2006 will amount to 3.5 million euros, which money will be spent on fitting out the production space of the cosmetics department, the storage space for the finished cosmetics products in Cluj Napoca and on buying new equipment to package the cosmetic creams.
Farmec's turnover in the first half rose by 2.5% from the same time last year, when the turnover of the company stood at approximately 8 million euros.
Farmec concluded last year with a turnover of 16 million euros; its officials estimate turnover will reach 18 million euros at the end of 2006.
Farmec SA management announced the launch of a modernised Gerovital H3 - prof.dr. Ana Aslan range this autumn.
According to the information provided by the company, the best selling products of Farmec are Gerovital H3, Gerovital Plant and Aslavital, which accounted for approximately 20% of the total sales in 2005.
The company also wants to boost its presence on the foreign markets. "The markets we are targeting next are Australia, Greece, China, Korea, the UK and Germany," Turdean says.
Farmec makes more than 15 million units a year and its portfolio includes 400 products - cosmetics, pharmaceuticals for external use and house cleaning products.
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