The strangest shift in the world of business .. Kodak gives up photography and goes to the pharmacy

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Economy

Al Ain newsletter Agencies
In a unique transformation in the business world, the American giant “Kodak” changed its skin after 132 years in the imaging sector, heading to the field of pharmacy based on its expertise in chemicals.

The famous “Eastman Kodak” group in the imaging field is engaged in the pharmaceutical sector with the help of a government loan of $ 765 million to reduce the dependence of American laboratories on suppliers from abroad.

Kodak will produce essential components of the pharmaceutical sector that suffer from a regular deficit in the United States, according to a statement issued by the United States Agency for Global Development Finance (DFC).

The initiative aims to allow the company to produce 25% of the active ingredients needed in the generic medicine industry in the United States, allowing the creation of 360 jobs.

“This percentage, 25%, is important. It is a crucial step in the transportation of the pharmaceutical industry to the United States,” US President Donald Trump told a news conference.

It is the first time that the DCF agency has funded a project in partnership with the Ministry of Defense aimed at fighting the Covid-19 pandemic under the Defense Production Act.

This law allows the federal government to use the private industrial sector for the country’s security needs.

“By taking advantage of our vast facilities, our deep experience in the chemical industry and our legacy in innovation and quality, Kodak will play a key role in returning the reliable drug supply chain to the United States,” said Jim Conninza, group chairman.

“The global pandemic has taught us that Americans are dangerously relying on external supply chains for essential drugs,” said Peter Navarro, President Trump’s adviser to trade.

This project marks a new turning point for the Kodak Group, which was founded in 1888.

The group, especially known for its films, had missed the transition to digital photography and declared bankruptcy in early 2012, before it refocused its activity on printing and packaging services and some chemical products and films destined for industrial uses.

The government loan will accelerate the availability of new Kodak-made pharmaceutical products in the market by helping it expand production sites in Rochester in New York State and St. Paul in Minnesota.

As a result of the announcement, the company’s shares on Wall Street rose by more than 200%.





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