THE Kedah State Economic Development Corp (SEDC) and Saamya Bio-Tech (M) Sdn Bhd are jointly undertaking a RM60mil project to manufacture medical drugs and pharmaceuticals in Semeling, Kedah.
Construction work is expected to start in a month on a 4ha site near Asian Institute of Medicine, Science and Technology campus in Semeling.
SEDC holds 20% equity, while Saamya Bio-Tech, whose parent company is located in Hyderabad, India, holds 51% and another local company, Venture Capital Sdn Bhd, 29%.
Production is expected to start a year from now.
Saamya Bio-Tech chief technical director Prof O.S. Reddi said only about 10% of the drugs produced in the factory would be for local consumption while 90% would be exported to India and the United States.
We will produce various kinds of medical drugs and pharmaceuticals which are in demand worldwide, he said in a telephone interview on Sunday.
Both signed a memorandum of understanding in Alor Star, Kedah, on Sunday, witnessed by Mentri Besar Datuk Seri Syed Razak Syed Zain.
Prof Reddi said the world market for medical drugs and pharmaceuticals was growing at average of between 5% and 10% yearly.
The growth is felt more in third world countries like Africa and Asia, where population growth is creating demand. We are projecting continued growth in the world market, he said, adding that this was the parent companys first venture outside India.
Did you find this article insightful?