Ranbaxy to invest $40 million to set up a second plant in Malaysia

Ranbaxy Malaysia Sdn Bhd, a wholly owned subsidiary of Ranbaxy Laboratories, has received approval for setting up a greenfield manufacturing facility in Malaysia as an EPP (Entry Point Project), the company said in a statement today.

Malaysian prime minister Dato' Sri Mohd Najib bin Tun Abdul Razak made the announcement at a ceremony held in Putrajaya, Malaysia today.

Ranbaxy will be investing around RM 125 million ($40 million) in the project that will provide employment to over 200 people. It will be Ranbaxy's second manufacturing facility in Malaysia, the company said in a release.

"Ranbaxy has been providing high quality, affordable generic pharmaceuticals to the healthcare system of Malaysia for the last 30 years, thereby helping the government to bring down healthcare costs. The setting up of a new manufacturing facility reinforces our commitment to the Malaysian market. In addition to serving the local market the facility will also export products to markets like ASEAN, the Middle East, Europe, Sri Lanka, China and other select countries," Arun Sawhney, CEO and managing director of Ranbaxy, said.

The new facility would manufacture dosage forms, including tablets and capsules primarily in the cardiovascular, anti-diabetic, anti-infective and gastrointestinal segments. The new facility will increase Ranbaxy's total output in Malaysia three-fold - from 1 billion doses per annum to 3 billion doses per annum.

"We are pleased that the Government of Malaysia has approved Ranbaxy's investment in a new manufacturing facility and the project has been accorded Entry Point Project (EPP) status under the Government Economic Transformational Programme (ETP)," said Jeyabalan Thangarajah, managing director of Ranbaxy Malaysia Sdn Bhd.