We successfully undergo all the necessary inspections and certifications. Our manufacturing facilities comply with all sanitary and environmental standards applicable in Kyiv. We constantly invest in the modernization of both manufacturing and treatment facilities. In particular, we have replaced boilers to minimize emissions. The pipes of our facilities emit water vapour, not smoke. Our ISO-14001 certificate confirms that we meet the environmental safety standards.
At the end of 2020, Farmak celebrated its 95 anniversary since its foundation, when the Lomonosov Chemical and Pharmaceutical Plant was put into operation. The manufacturing of products involving complicated chemical synthesis affected the environment and was cut down over time. The volume of chemical products manufactured by the Plant significantly decreased after it had been privatized and transformed into a manufacturer of finished medicinal products in the 90s. The remaining products were used to manufacture finished dosage forms. That is, we had a competitive advantage, since we owned a full cycle of medicinal product manufacturing. We have still been manufacturing active pharmaceutical ingredients (API). This is actually the chemical production that is concerned today.
In 2016, we launched a chemical manufacturing facility in Shostka, Sumy Region. We invested about USD 40 million and developed a modern manufacturing facility with all water and air treatment facilities. The facilities involved in high-tonnage manufacturing of API have been relocated, that is 90% of all API manufactured by the Company. But a part of the facilities involved in pharmaceutical R&D of chemical compounds which we use to manufacture finished dosage forms are still located in Kyiv, including a chemical synthesis laboratory that develops medicinal products.
Such facilities are of great importance for us. A vertically integrated company that can control a substance price and the full value-added chain is more competitive not only in Ukraine, but also in the global markets.
We focus not only on contributing to industrialization, but also on creating science-intensive jobs. That is, we want Ukrainian specialists to have the opportunity to find really decent jobs and create added value in Ukraine rather than pick strawberries in Poland. Pharmaceutical industry is one of the largest in terms of added value creation. According to various estimates, one job in pharmaceutical industry results in 12 to 16 jobs in related industries.
