After relocating from Hillsborough, New Jersey nine years ago, David Bancroft became vice president of finance and information services and later also assumed responsibility for logistics at Cilag’s manufacturing facility in Schaffhausen. In April, 1997 he became managing director. Now at the helm, he faces different challenges and new opportunities.

Cilag is a developer and manufacturer of chemical and pharmaceutical products in support of J&J’s pharmaceutical business. 

Due to success over the last several years, Cilag has been experiencing considerable growth. Tell us about the current expansion taking place. 

BANCROFT: Even though manufacturing is more productive and efficient than ever, we’re adding a lot of people. Cilag has been actively expanding its base of production in Schaffhausen since the mid-1990’s. You can see it in our new construction and renovation of existing facilities. The volume growth that we could attract to our facility has been significant over the past five years. Our employee roster has grown considerably. Before 1995 we had 500 employees. After 1995 we had 600. Now we’re over 650. 

What’s the experience been like for Cilag, as a Schaffhausen-based company? 

BANCROFT: The relationship between Schaffhausen and Cilag is extremely positive. It’s a friendly business climate that is based on mutual trust. We feel comfortable here. Cilag takes its responsibilities as a citizen seriously, and it supports public initiatives and cultural events. 

In your opinion, what is the key consideration for any company when planning to establish or relocate its operations? 

BANCROFT: Clarify the key criteria for your particular company first, which for many firms goes beyond a traditional cash flow analysis. Items such as the type of labor pool needed, location within European transit systems and other issues should be prioritized with the financial considerations. At first glance, Swiss salaries appear high, for example, but the productivity and flexibility of the workforce balance the numbers somewhat, and for many companies, available tax relief provides a very competitive situation for Schaffhausen. 

For companies considering expansion, what are the key issues - and why is Schaffhausen so strong?  

BANCROFT: Schaffhausen’s location in the center of Europe bordering directly with Germany, makes it well situated to set up a European logistical hub, for example. Other companies, such as Oracle, have located regional headquarters here.  The proximity to the large pharmaceutical companies in Basel, as well as in the universities in Basel, Zurich and Southern Germany, has been helpful to Cilag on many projects. 

What types of companies would find Schaffhausen attractive and competitive? 

BANCROFT: We have studied this issue as part of the work group that analyzed the economic development of the region recently. Clearly, manually-intensive, simple operations with low operating margins would be better served somewhere else. Once the complexity of the product or service increases, the value of Schaffhausen rises significantly. Less labor-intensive, more know-how driven operations, such as our, take advantage of the highly educated workforce. As I indicated before, there are also tax structures that make Schaffhausen attractive for headquarters, manufacturing, services and holding companies as well. These are some examples. I could mention specific industries, but I would rather suggest that interested parties contact the Economic Development of Canton Schaffhausen directly.

What stands out in your mind as the key advantage to coming to Schaffhausen? 

BANCROFT: Since we do our manufacturing here, the labor situation is one of Schaffhausen’s biggest assets. We have a highly qualified workforce, a longer work week, less absenteeism, no strikes and constructive relationships with labor unions. There is a very different attitude among labor here than in other European countries or even the United States. 

Would you recommend other companies seriously consider Canton Schaffhausen as a great place to invest? 

BANCROFT: Absolutely. 

For more information, contact:

David B. Bancroft, Cilag AG

Phone +41-52-630-9111, Fax +41-52-630-9445

E-mail dbancroft(at)cilch.jnj.com

Schaffhausen: A Business Location Keeping Pace with Change

Located at the northern border of Switzerland, the region of Schaffhausen is characterized by its ”frontier location with a turntable viewpoint”. Schaffhausen is situated in the middle of an economic area stretching from the Alps to the agglomeration of Stuttgart in southern Germany, from Lake Constance along the Rhine River to the city of Basel; it is at the center of Europe, a region for which outstanding growth has been forecasted. 

Schaffhausen has always been at the crossroads of major international traffic routes, whether rail or road. And just 25 kilometers away is a window to the world: the international airport of Zurich. The regional economy profits greatly from this favorable location. 

There is a great deal of tradition in this industrial canton. The founder of our corporation, Johann Conrad Fischer, began with the industrial manufacturing of cast iron nearly 200 years ago. Taking advantage of the local water power, numerous industrial corporations took up sites along the upper Rhine and the adjacent valleys all the way to the famous Rhine Falls. Although today the trade and service sectors have gained importance, the number of persons employed in the industrial sector is still high compared to the national average. Renowned firms, such as Georg Fischer, the Swiss Industrial Corporation (SIG), Alusuisse, Knorr-CPC, the Internationale Verbandstoff Fabrik (bandaging materials), and the International Watch Company (IWC), had good reason to choose Schaffhausen for the location of their headquarters. The companies domiciled in Schaffhausen all collaborate well and in various ways. Their interests are represented in the Industrial Association of Schaffhausen (IVS), which constantly strives to improve general framework conditions.

A government amenable to the needs of business is supportive of companies. The authorities and the government of the Canton of Schaffhausen take every possible measure to promote business, for example, fast licensing procedures, clear terms, quick decision-making and direct contacts. These criteria are very useful to companies looking to locate here. Compared to the rest of Switzerland, Schaffhausen is notable for its very attractive legislation pertaining to holding companies. Also worth mentioning is the accommodating practice of granting work permits to foreign specialists.

Schaffhausen has enabled companies, such as the Georg Fischer Corporation, to react faster to the needs of the global market. Another advantage of the above mentioned changes is the improved competitiveness of the companies in the region. By keeping pace with the latest trends, Schaffhausen is an industrial location with a bright future. 

mailto:info(at)georgfischer.com