Inno Biologics Sdn Bhd has been granted an eight-year loan of RM42mil by Bank Industri & Teknologi Malaysia to partly finance its biopharmaceutical production plant in Putra Nilai.
The balance of the cost would be financed by internal funds amounting to RM38mil, Bank Industri chairman Tan Sri Othman Mohd Rijal said after the signing of the term loan agreement in Kuala Lumpur yesterday.
The bio-pharmaceutical plant, which is expected to be completed by the first quarter of next year, will begin production in the second quarter. It will produce a range of products for the clinical treatment of cancer patients and fertility treatment.
Inno Biologics group head of corporate communication Wan Ahmad Sufian said: We are still negotiating with a few local clients for the supply of the products and we are working on the marketing strategy to attract foreign clients.
He said the company had spent about RM5mil for research and development on equipment and consumable sectors. It plans to allocate about RM10mil on R&D for further expansion. The company also plans to spend RM60mil to acquire machinery for the plant. The company expects the plant to generate returns within the next three to five years, Wan Ahmad said, adding that it would also invest about RM1mil to train its workers.
It has a work force of 35 employees and the number is likely to double to 70 next year.
Inno Biologics has a paid up capital of RM75mil.
Bank Industri expects loans growth to reach RM570mil this year. Last year, the bank gave out RM200mil in loans, of which RM43mil were allocated to the shipping sector.
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