Norway has only one factory that produces painkillers. It is called Palla Pharma and is located in Kragerø.
In addition to manufacturing, the company is an important workplace in the quiet summer town.
Tuesday, the newspaper may KV report that all 80 employees have now received dismissal notices.
– Not exactly what we were hoping for
Trade union representative Marianne Erlund says employees are disappointed but at the same time understand that the company needs to act.
– We originally envisioned a slightly different autumn. After what we went through this spring, it wasn’t quite what we were hoping for.
He hopes the move will lead to saving the company.
– But at the same time, this may be what it takes to save the company and face a new year.
NRK has already mentioned this the company was in danger of closure. At that time, a rescue operation was initiated in which employees set up a crisis team. Eventually they were helped by the municipality, which supported them.
NRK has been trying to get in touch with the Kragerø Mayor and the County Mayor to find out if they will give the same support this time. They haven’t answered yet.
Artificially low prices
The factory depends on the delivery of raw materials from overseas to produce the pain relief tablets. Production is therefore vulnerable.
But the raw material can be purchased and stored longer than the finished pills. And from this raw material, they also produce their active ingredient in the Kragerø plant. This can provide pain relievers for both Europe and Norway in a crisis.
However, the factory now feels compelled to act. They expect around half of all employees to be fired, which equates to around 30-40 people.
The reason for the layoffs is the great uncertainty in the market, according to president Morten Andresen and factory manager Craig Sweenie.
– For a long time the prices of our products have been low. Especially for tablets, it was not possible to achieve sustainable prices in the market, they write in the press release.
Uncertainty about the power support
Furthermore, it is stated that the council decided before the summer to wait for the balances until the prices increase, but that this has not yet happened.
– There is also uncertainty about the extent of the electricity subsidy announced by the government.
The advice specifies that it has faith in the future and that there are concrete plans to move to normal operations after this.
They are working to limit the closure to a period of up to six months.
President Andresen told NRK on Tuesday evening that he does not wish to comment on the matter further.
The Sweenie factory manager did not respond to NRK’s inquiries.
