SMITHKLINE Beecham's US$45 million plan to build a hi-tech pharmaceutical manufacturing facility in Tianjin marks its third mainland venture, bringing it closer to its aim of being the mainland's largest drugs-maker.
The British giant received approval - after 18 months of talks - to establish a holding company for its mainland operations in Beijing last week during British Prime Minister Tony Blair's visit. The new plant is expected to go into full production in 2000 or 2001.
The Tianjin plant will be SmithKline Beecham's second partnership with Tianjin Pharmaceutical Holdings. Its first investment in the mainland was in 1984, when it established the Tianjin SmithKline and French Laboratories. A vaccine-producing joint venture was established in Shanghai in 1995.
Stephen Lui, vice-president of North Asia, will head the new holding company, SmithKline Beecham China Investment (SBCI) - to be based in Beijing.
'We are hopeful we will be the largest healthcare company in China,' he said. He expects to double sales in the next three to five years. SmithKline Beecham produces more than 1.4 billion capsules and tablets a year on the mainland, generating sales last year of 1.1 billion yuan (about HK$1.02 billion).
The new facility promises to be one of the most advanced on the mainland. Mr Lui said it was being designed to meet world standards for clinical trials and would produce drugs now in the early stages of the US approvals process.
