Nearshoring means relocating production to a nearby country instead of to distant low-wage countries. In pharmaceutical production this model is gaining importance because supply chains from Asia have broken several times in recent years. A site in the European part of Turkey combines short routes to Central Europe with spare capacity and competitive costs. This article shows what nearshoring means for sterile filling and what pharmaceutical companies should look for.
Key takeaways
- Nearshoring cuts transport times from weeks to days and makes supply chains easier to plan.
- Turkey is a member of the customs union with the EU, so industrial goods cross the border without duties.
- Lubeca fill produces in Çorlu near Istanbul with German equipment and is preparing EU GMP certification.
What does nearshoring mean in pharmaceutical production?
With nearshoring a company relocates production steps to a geographically close country. Unlike offshoring to Asia, time zones, transport routes and culture remain close together. In the pharmaceutical industry this mainly concerns the fill and finish step, meaning sterile filling into ampoules, vials and bottles. It is precisely here that capacity has been lacking in Germany and Western Europe for years.
Why pharmaceutical companies are now considering nearshoring
The pandemic and the shortages of the following years showed how vulnerable long supply chains are. Containers from Asia took weeks, freight rates multiplied and authorities called for more production in Europe. At the same time, sterile lines in Germany are fully booked. Pharmaceutical companies are therefore looking for sites that offer both proximity and spare capacity.
Comparison: production in Germany, nearshoring and offshoring
| Criterion | Germany | Nearshoring Turkey | Offshoring Asia |
|---|---|---|---|
| Transport time to Central Europe | 1 to 2 days | 3 to 5 days by truck | 4 to 8 weeks by sea freight |
| Customs | none | customs union, no duties on industrial goods | duties and import clearance |
| Spare sterile capacity | very scarce | available | available |
| Cost level | high | medium | low |
| On-site audit | day trip | flight from 3 hours, day trip possible | long-haul flight, several days |
| Time zone | same | plus 1 to 2 hours | plus 6 to 8 hours |
What advantages does Turkey offer as a location?
Customs union with the EU
A customs union between the EU and Turkey has existed since 1996. Industrial goods, including medicines, are traded without duties. Import into Germany is therefore much simpler than from third countries without an agreement.
Pharmaceutical infrastructure
The region around Istanbul and Tekirdağ is one of the most important pharmaceutical locations in Turkey. Suppliers of packaging materials, laboratories and logistics providers are available. In addition, the Turkish medicines agency TİTCK is a member of PIC/S, the international cooperation of GMP inspectorates.
Short distances and direct communication
Istanbul can be reached from Frankfurt or Düsseldorf in around three flight hours. An audit can therefore be carried out in a single day. At Lubeca fill the contacts speak German and English, because the company emerged from the Erkol Fill group in Solingen.
What to look for when nearshoring
- GMP status of the site and timeline for EU GMP certification
- Qualification of the site in your own marketing authorisation, which requires a variation
- Qualified Person in the EU who releases the batches
- Temperature-controlled transport and customs handling
- Contractual arrangements on quality, liability and audits
Nearshoring with Lubeca fill in Çorlu
Lubeca fill was founded in 2019 and operates a plant in Çorlu near Istanbul, in the European part of Turkey. The equipment comes from Groninger, Bausch + Ströbel and Syntegon, and the processes follow German standards. Lubeca fill fills ampoules from 1 to 10 ml, vials, eye and nasal preparations, liquid dosage forms and diagnostics. EU GMP certification is currently in preparation. Read more in the article on contract filling according to EU GMP and in the article on drug shortages.
Frequently asked questions about nearshoring
May a medicine for the EU market be filled in Turkey?
Yes, if the site works according to EU GMP, is listed as a manufacturing site in the marketing authorisation and a Qualified Person in the EU releases the batch.
How long does transport to Germany take?
By truck usually three to five days, depending on route and border clearance.
Is nearshoring cheaper than production in Germany?
Usually yes, especially for personnel and operating costs. Often, however, the decisive factor is not the price but the availability of spare capacity.
Are you considering a second production site close to the EU? Contact us and we will show you the plant in Çorlu.
