2021/05/25 - Press
Virbac ready to sell the industrial site of Magny-en-Vexin (Paris) to the company Friulchem
As part of its 2030 vision, Virbac sells the ownership and activity of the Magny-en-Vexin industrial site to Friulchem, a CMO (Contract manufacturing organization) partner of Virbac for more than twenty years and specialized among others in the production of antibiotics. Following the sharp decline in demand in recent years for the type of products manufactured in Magny-en-Vexin, this option will preserve employment, the competitiveness of the site and products.
The Magny-en-Vexin site (Paris area) is a centre for the production of medicated premixes, soluble oral powders as well as liquid and pasty oral forms for food producing animals (mainly antibiotics for pigs and poultry) and non-medicinal nutritional products.
As a result of regulations aiming at limiting the use of antibiotics in industrial livestock, European markets for these types of products have decreased considerably in recent years, lower volumes leading to higher manufacturing costs and loss of commercial competitiveness.
As part of the 2030 vision, which focuses on growing and higher value-added activities, we have chosen the most suitable option for the site and job preservation, namely the divestiture of the Magny-en-Vexin site and activity to the CMO Friulchem. This Italian family company, specialized in processing on behalf of third parties, now manufactures similar veterinary medicines for different animal health manufacturers.
This transfer is part of a long-term vision with a ten-year agreement that can be extended. Friulchem will certainly have to repatriate other products to the Magny site and manufacture other products on behalf of third parties, which should lead to a better absorption of the fixed costs of the plant from which Virbac will benefit.
The objective of this transfer is above all to ensure the sustainability of the site, jobs and production, ensuring the long-term competitiveness of the products to continue to serve our customers.