BUSINESS
RHODIA CONSOLIDATES IN THE GARDEN STATE Move into new facilities in New Jersey is part of larger revamping in pharmaceutical chemicals
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HODIA MADE TWO ANNOUNCE-
ments in recent weeks regarding its pharmaceutical chemicals unit, Rhodia Pharma Solutions. On Aug. 31, the company said Pharma Solutions' Chambers Works fa cility, a site rented from DuPont at the chemical giant's sprawling Deepwater, Ν J., complex, had "come on-line," less than a year after Rhodia began moving its North American pharmaceutical services opera tions there. Three weeks later, the company an nounced a 25% staff reduction at the phar ma chemical unit's Dudley, England, facil ity and the discontinuation of some small-volume production. While the announcements reflect the business' establishment of a new center in the pharmaceuticals breadbasket of New Jersey, they also indicate that reorganiza tion and downsizing continue to impact the unit as Rhodia completes a corporatewide overhaul. That overhaul was initiated last Octo ber when incoming Chief Executive Offi cerJean-Pierre Clamadieu detailed a thor ough restructuring plan that would cut the number of enterprises within the French firm from 17 to nine. Some $870 million worth of businesses would go. Clamadieu declared that Rhodia would focus on three overall areas going forward—home, per sonal care, and industrial ingredients; coat ings; and pharmaceuticals. Clamadieu, the former head of Rhodia's pharmaceutical and agrochemical business, committed to pharmaceutical chemicals despite the fact that Rhodia's 2 0 0 0 acquisition of ChiRex, composed of former Sterling Drug and Glaxo Well come assets, for $545 million is cited as a key factor in the financial distress that forced the restructuring. Rhodia has spent the past year consol idating its North American pharmaceuti cal services operations—including ChiRex faculties in Boston and Malvern, Pa.—at the Chambers Works facility, which most recently was used by Bristol-Myers Squibb. With 17 manufacturing units, ranging from 30 to 750 gal, the New Jersey site offers services ranging from process development 22
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ments that have been made at Rhodia on the corporate level, as well as the reorgan ization of his business this year. He notes that Clamadieu has exceeded his target on proceeds from divestitures, largely with the sale of Rhodia's food and industrial phosphates business. While recognizing that full service is a trend in pharmaceuti cal custom manufacturing—one that Rho dia helped pioneer with the ChiRex pur chase—Green sees real differentiation in the company's approach based on quality and capabilities.
to Phase III clinical trial production and small-volume manufacture of active phar maceutical ingredients (APIs). The Chambers Works operation is also GREEN CLAIMS the Chambers Works meant to cater to customers seeking small plant—with fully contained manufactur er scale production of targeted, high-po ing, high- and low-temperature capabili tency drugs, which, according to Nick ties, and glass-lined stainless steel vessels— Green, president of Rhodia Pharma Solu is second to none in North America. He tions, is predominantly a U.S. phenomenon. adds that Annan is a world-class current With facilities in Dudley and nearby An Good Manufacturing Practices-certified nan, Scotland, focused on pharmaceutical facility acquired from Glaxo. intermediates and large-scale API manu facture, as well as plants in France, China, Wolfgang Muhs, Rhodia's vice presi Thailand, and Brazil, Rhodia is hoping to dent for development services, adds that use the NewJersey site both to home in on technology is an important hook. Muhs the U.S. market and to anchor a $300 milnotes that Rhodia has expertise in a range lion-per-year full-service business that can of important technologies, including hytake customers from process development drolytic kinetic resolution and aromatic through to large-scale manufacturing. bond formation, both key chiral synthe sis techniques. Much of Green's job since coming on Although he will not disclose capacity board last year has been bringing Rhodia's figures, Green says Chambers Works is cur far-flung pharma operations into focus around major facilities in the U.S. and the U.K. Rhodia, which sup plies large-volume analgesics such as aspirin in addition to custom manufacturing, still does some pharma manufacturing at nearly 20 sites worldwide. "We had a siz able presence in pharmaceuticals, but it was cleverly disguised in the general business," Green says, adding that Pharma Solutions brings it under an umbrella to show the full power of the offering. "Normally, consolidation means downsizing, but in this case it means clearly the opposite," he says. EXIT ONE Muhs (left) and Green have moved Peter Pollak, a private consult shop to space at DuPont's Deepwater, NJ.P ant and former head of Lonza's complex, situated at the crossroads of the U.S. pharmaceutical fine chemicals op drug industry. eration, still sees the consolida tion at Rhodia in the context of downsiz rently operating at a level comparable with ing. He points to the large number of the combined Boston and Malvern facili facilities listed on the company's website ties prior to the move. The challenge now, and the financial troubles experienced by he says, is to communicate the new strat the parent company as indications of ob egy at Rhodia and show customers the new stacles for the pharma group. He also ques facility "When customers come in and see, tions whether Rhodia's full-service strat they are usually ready to do business," egy is any different from that of other Green says. "We are getting the message major pharmaceutical chemical firms. out through the age-old practice of sales."— RICKMULLIN Green says this view ignores improve H T T P : / / W W W . C E N - O N L I N E . ORG
