Cape Town - Johnson & Johnson unveiled their modernised manufacturing plant in Retreat yesterday. The plant underwent a R300 million upgrade to allow them to export into the rest of Africa.
Speaking at the unveiling yesterday, Minister of Trade and Industry Rob Davies said a few years ago the international company had to make a decision to withdraw from South Africa or to upgrade and invest.
They employ 550 people across a range of skills and disciplines.
“In the end they decided to upgrade and invest. They have set themselves a target that by 2022, to reach triple their current output. That should be an output of $500m.”
The pharmaceutical industry forms part of the DTI’s Industrial Policy Action Plan (iPap). South Africa has the biggest pharmaceutical industry in Africa and it is set to grow as international companies look to the country as a springboard into Africa.
The Johnson & Johnson plant produces over-the-counter medication, and they hope with the modernisation that they will soon be able to produce prescription medication.
One of the policy’s goals is to support the growth of South Africa’s manufacturing sector. The country’s pharmaceutical industry is estimated to be worth R30 billion.
The company’s operations director, Alex Granados, said at the moment Nigeria, with a population of 105 million, is one of the sectors they want to expand into.
“We plan to expand even more and create more jobs and export opportunities in South Africa’s pharmaceutical industry,” said Granados.
The DTI said the pharmaceutical industry plays a major role in the country’s health-care science and education.
“We also do have export capacity and we have the ability to produce pharmaceuticals in South Africa. We do have export products including from this company.
“This particular plant processes over-the-counter medicines and at this stage there is a possibility they can move into prescription medication,” said Davies.
The plant is geared to meet the aggressive growth targets the organisation has set for itself. Johnson & Johnson is responsible for supplying more than 28 markets within sub-Saharan Africa.
Some of the upgrades included 10 000-litre holding tanks, an upgraded chemical lab and production area. The lab’s upgrade cost R6m – most of the work was done by local companies.
Quality and compliance director Mortimer Adams said they recruited additional science interns.
“Like other companies in the manufacturing space, this company has seen a good experience in South Africa and decided to invest and we are in support of that,” Davies said.
According to Davies, one of the decisions that has led to Johnson & Johnson investing, is that they can access the African market.
CAPE TIMES