Inno Biologics gets RM42mil loan for plant


  • Business
  • Saturday, 02 Apr 2005

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. 

Bank Industri group MD Datuk Md Noor Yusoff (left) exchanging documents with Inno Biologics CEO Dr Mohd Nazlee Kamal. With them are Tan Sri Othman Mohd Rijal (2nd from left) and Science, Technology and Innovation Minister Datuk Seri Dr Jamaludin Jarjis.

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.  

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

Moody's affirms Malaysia's A3 rating; maintains stable outlook
Thai fin ministry cuts 2021 GDP growth outlook on tourism slump
China's Didi raises US$300mil for autonomous driving unit
Gold falls as safe-haven appeal shifts to dollar
Digital network redesigned to meet higher demand amid MCO
China stocks post biggest drop in over 6 months on policy tightening fears
Japanese shares rack up biggest fall in 6 months as tech shares slide
Allianz gets approval to set up insurance asset management firm in China
Philippine economy shrinks at slower pace in Q4, posts record contraction in 2020
Maybank to spend RM500k to upskill non-clerical employees

Stories You'll Enjoy


-->