SAJAPHCO Pharmaceuticals Formulation Plant, Saudi Arabia

In 1998, construction began on a new pharmaceuticals formulation plant in Jeddah, on the Red Sea coast of Saudi Arabia. The new plant is owned by Saudi Arabian-Japanese Pharmaceutical Company (SAJAPHCO) and is part of a joint venture, which was established between the Japan International Development Organization (JAIDO), Sankyo, Yamanouchi Pharmaceutical, Marubeni Corporation and Tamer, a Saudi Arabian drug wholesaler (Farouk, Maamoun Tamer & Co), in 1996.

The plant, completed in 2000, produces two Sankyo formulations – Loxonin, an anti-inflammatory drug, and Acecol-ACE inhibitor – and three Yamanouchi products: Josamycin-macrolide antibiotic, Omnic-benign prostatic hyperlasia, and Hypoca for the treatment of hypertension (all of these are manufactured under license).

The plant also carries out contract bulk pharmaceutical production for other Japanese drug companies.

PARTICIPANTS IN THE JEDDAH PLANT VENTURE

With backing from both the Saudi and Japanese Governments, the project was first conceived in July 1996 and received capital amounting to SR72m. This was shared out between FMT Industries (51%), a wholly owned subsidiary of Tamer, JAIDO, Sankyo and Yamanouchi (15.47% each), and Marubeni (2.59%). The Japanese companies hold a total of 49%.

As a long-established pharmaceuticals importer on behalf of many pharmaceuticals manufacturers, Tamer has been appointed to act as the sole agent for marketing and distribution in Saudi Arabia, the GCC countries and the Yemen.

CONSTRUCTION AND PRODUCTION CAPACITY OF THE SAJAPHCO PLANT

Trial formulation began at the plant in August 1999 with the plant being completed in the last quarter of 1999. Full-scale production and marketing was expected to begin during 2000. The total cost of the plant was Riyal 180m ($48m).

The plant was constructed by JGC (Arabia), a Japanese contractor with ample experience of the pharmaceuticals and petrochemicals markets and FREYSSINET SAUDI ARABIA CO. LTD a Saudi Arabian construction company.

A site 30,000m² in size was chosen for the project, of which the built-up area measures 5,850m². Juffali Airconditioning Mechanical and Electrical Co (JAMED) carried out the HVAC (heating, ventilation and air conditioning) work on the plant.

The plant was designed to produce 90 million tablets and 75 million capsules a year, the majority of which will be for diabetes and hypertension medication.