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Process Worldwide-PharmaTEC 02-2004
Reaching for market
leadership in America
New Schott plant for pharmaceutical packaging in the USA

Production in close proximity to the customer and outstanding product quality are absolutely essential for any company that wants to succeed in the highly competitive global pharmaceutical packaging market. The USA is the largest producer of pharmaceuticals, and this makes it a highly attractive but difficult market.

The goal of becoming the “market leader on the American continent” is not exactly modest. Schott forma vitrum does have a global presence at ten manufacturing sites around the world, but even for one of the world’s leading producers of high quality pharmaceutical packaging, taking over the leadership position in the American market is not an easy task. Nevertheless, the company has made a start. A new Schott plant has been built in Lebanon, Pennsylvania to produce high-quality primary packaging for the North American pharmaceutical industry. Fourteen million dollars were invested in a new plant which will produce vials, dental cartridges and ampoules conforming to international Schott standards. These standards apply across the board, starting with plant design and work flows. The requirements as well as the stringent quality control measures are the same around the world. On a manufacturing area covering 16 000 m2, everything is in place to carry out state-of-the-art production. Only high quality special glass tubing made by the Schott tubing business unit will be used as raw material at this plant. The material acquisition process represents the beginning of a comprehensive quality assurance system. All production systems have been fitted with monitoring systems. Video cameras used to perform 100 percent inline checks and hundreds of sensors mounted on each system ensure that products conform to customer specifications. There is also sufficient space at the plant for future expansion and a significant enhancement to the product range. Planning is already in place to produce new products including glass or polymer syringes. Entry into the syringe market offers significant growth potential. Syringes make up 27 percent of the North American market for primary pharmaceutical packaging material made of glass tubing, and that proportion is growing by 15 percent annually.
Already well positioned in the American market The US is home to the world’s largest pharmaceutical companies. The North American market represents one quarter of worldwide demand for pharmaceutical packaging made of glass tubing. Christoph Fässler, Manager of the Pharmaceutical Systems Strategic Business Unit is focusing on the goal he has set (please read the interview in the box): “We are currently number three in America, and we clearly want to become number one.” Schott has production plants in Cordoba, Mexico and Lebanon, Pennsylvania, making it well placed to reach the position it wants in the North American market. Growth in spite of cost pressures Even when the economy is going through a tough phase, demand for pharmaceutical packaging remains stable. Demand is growing at about three percent per year. Nevertheless, in many countries, including the US and Germany, the cost of healthcare delivery is under scrutiny. This has an effect on the price of packaging materials. The creation of the Pharmaceutical Packaging business unit will help the company succeed in this increasingly competitive market. As the only supplier of pharmaceutical packaging materials made of glass tubing, Schott forma vitrum has ten production sites worldwide to ensure that it can provide fast, reliable service to local markets.
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