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Pharmaceutical giant Aspen [JSE:APN] says its new sterile anaesthetics manufacturing plant in Port Elizabeth is expected to generate R4bn in exports in the medium term.
It is scheduled to begin production by 2022/3.
On Friday, the firm unveiled an additional R3.4bn investment into the facility, in a capital injection set to transform the country into one of the world's leading hubs for anaesthetics medicines.
Aspen, Africa’s largest generic drug maker, made the announcement at the inaugural Investment Summit last week, which saw dozens of local and international firms committing to investing in the local economy, as part of President Cyril Ramaphosa’s plan to boost the economy.
"Port Elizabeth is going to be one of the most important anaesthetic manufacturing hubs globally, and unlock significant export opportunities for the country," said Aspen Senior Executive Stavros Nicolaou.
It is the country's single largest pharmaceutical investment, according to Aspen.
The investment is expected to have a knock-on effect on the region's economy, and unlock the local manufacturing supply chain.
"While Aspen operates manufacturing plants in many geographies, it has chosen South Africa as the location for its largest and most critical manufacturing facilities," the company said on Friday as it announced the investment.
The products to be manufactured at the plant include would include neuromuscular blocking agents, general anaesthetics Ultiva and Diprivan, and local anaesthetics Marcaine and Xylocaine.
Aspen plans to relocated some of its manufacturing facilities from Europe to Port Elizabeth, in what is regarded as confidence in the local economy.
The company already has five factories in Port Elizabeth, and the new plant is expected to generate between 100-300 jobs.
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