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Sanofi decided to keep its outsourcing chemicals business

The French pharmaceutical giant Sanofi said it had decided to maintain its activity outsourcing of chemical active ingredients, thus removing the options of a sale or joint venture, to the relief of employees of two French factories concerned.

This decision was taken "in view of the improved results recently observed" this activity and its "promise" of development, according to a statement from the group sent to AFP.

Sanofi decided last fall to split into two entities its chemicals business, one for herself and the other dedicated to outsourcing.

This second entity created from the 1er January has three factories of the group in Elbeuf (Seine-Maritime) Vertolaye (Puy-de-Dôme) and Ujpest inHungary. Either 1.600 employees, approximately 1.100 on the two French sites.

At these production numbers also add about 500 employees in research and development and marketing, said a spokesman for Sanofi AFP.

The group invested 230 million euros in the modernization of its plants Elbeuf and Vertolaye over the past five years, stressed the President of Sanofi France, Philippe Luscan during a roundtable at the National Assembly in mid -February, where he was questioned in particular about the future of these sites.

This activity makes to other players in the pharmaceutical active ingredients such as vitamins, hormones, antibiotics or anti-inflammatory. It represents an annual turnover substantial, around EUR 450 million but its margins are low.

The group examined so far three options for that entity: its maintenance within the group, assignment or joint venture, and planned to decide by the end of the year.

Unions Sanofi France welcomed Friday the abandonment of the proposed sale, which worried them most and which according to them was the most likely option.

The CFDT Chemistry welcomed in a statement the "choice of reason" to maintain in-house "skills that have contributed and continue to contribute to the development of Sanofi."

"We are very happy about this decision," told AFP Thierry Bodin, head of CGT at Sanofi. "But we still want to have confirmation that this is final, it is not for a few months," he tempered.

Sanofi separated earlier this year of Merial, its animal health subsidiary, sold to the German laboratory Boehringer Ingelheim, and is looking to sell by the end of 2018 its European operations in generics. These relate 3.000 about jobs, mainly in the Czech Republic and Romania.

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