Alcon Pharmaceutical Facility, Tuas Biomedical Park, Singapore

Alcon Inc is a Swiss pharmaceutical company, owned by Nestle SA since 1978 and with a significant stake belonging to Novartis. It manufactures medication for the treatment of eye conditions; the company has been actively researching and manufacturing in this area for over 60 years. The company produces pharmaceuticals, surgical equipment and devices such as intraocular lenses and contact lens care solutions.

Alcon is one of the world's largest eye care companies with worldwide sales in 2007 of $5.6bn and profits of $1.6bn. Sales of pharmaceuticals for treatment of eye diseases have been growing at more than 20% per year in Asian markets and consequently the company has decided to expand and build a new production plant in Singapore. Alcon already has a manufacturing site for surgical intraocular lenses in Beijing producing the Acrysof intraocular lens implant, which is the most popular implant used in cataract surgery worldwide.

The company also broke ground in September 2008 on an expansion of its Huntington, West Virginia facility. On a 21-acre site in Cabell County, this is the world's largest manufacturing centre for intraocular lenses.

In Huntington the new 74,000ft² expansion will cost $25m and will be in operation by 2011, providing an additional 350 jobs in the area.

Alcon Singapore

The new 250,000ft² Alcon facility in Singapore will be constructed on a leased 20-acre site in Tuas Biomedical Park. The facility is currently in the design and planning phase and ground breaking is expected in 2009.

The Singaporean authorities have welcomed the new addition to the island's pharmaceutical / biomedical industry cluster as there has been a recent trade/export downturn due to the financial problems in the US. Output in December was down 34% on the previous year.

Ed McGough, who is the senior vice president for global manufacturing and technical operations for Alcon, commented: "After a lengthy and careful analysis of potential plant locations and through close collaboration with the Singapore Economic Development Board, we selected Singapore due to its highly skilled and reliable workforce and well-established government infrastructure."

The new plant is scheduled to begin production by 2012 and will employ 150 personnel within three years of the opening.

Production

The facility in Singapore will manufacture pharmaceuticals to be distributed throughout the growing Asian markets in a cost-effective and efficient manner. When the plant becomes operational, the company expects to manufacture at a rate of more than 53 million units per year by the end of the third year of operation.

The new plant will produce a range of the company's bestselling products for the expanding Asian market, including: Travatan (travoprost), Patanol (olopatadine) and Vigamox (moxifloxacin) ophthalmic solutions, Tobradex ophthalmic ointment, and Systane eye drops.

Construction

In August 2008 Foster Wheeler Ltd announced that its US subsidiary, Biokinetics Inc, and its Singapore office (both part of the Global Engineering and Construction Group), had been awarded a contract by Alcon Laboratories Inc for the conceptual and basic design (engineering and architectural services) of the new manufacturing facility in Singapore.

Bill Brydges, president of Biokinetics, commented: "This exciting opportunity highlights yet another step in our growing relationship with Alcon.

"Alcon's vote of confidence is a clear demonstration of the sound value proposition we offered.

"Our winning combination leverages Foster Wheeler's strong track record in pharmaceutical and biopharmaceutical projects and its in-depth knowledge of the Singaporean market, together with our relationship with Alcon, and our ability to execute the concept/basic design phases in the US in line with our understanding of Alcon's requirements."