PETALING JAYA: Pharmaceutical group APEX HEALTHCARE BHD is building an RM68mil new manufacturing plant at its existing production site in Malacca.
The new factory, when completed in early 2018, will double the size of its production floor space.
The planned oral solid dosage manufacturing facility will help the group increase its production capacity and capabilities.
It said the current production facilities of Apex’s wholly owned subsidiary, Xepa-Soul Pattinson (Malaysia) Sdn Bhd, have already reached their maximum capacity.
The existing facilities cannot be further retrofitted economically to increase output.
The new plant, known as SPP NOVO, will add a further 19,406 square metres of built-up space to Xepa’s current manufacturing campus at Cheng Industrial Estate, which has a total built-up area of 17,345 sq m.
“The construction of SPP NOVO is not expected to have any effect on the earnings of the group for the financial year ending Dec 31, 2016 and subsequent years until commissioning in the first half of 2018,” the company said in a filing with Bursa Malaysia,
“Thereafter, the depreciation cost of SPP NOVO may reduce the earnings of Apex until capacity utilisation is optimised,” it added.
The construction will be funded through a combination of internally generated funds and external borrowings.
Apex has yet to finalise the terms and quantum of borrowings required.
SPP NOVO is Xepa’s strategic investment to design, build and operate an advanced manufacturing facility for the production and packaging of tablets and capsules, for both domestic and international markets.
The enhanced facilities will increase both capacity and capabilities for the manufacturing of tablets and capsules.
Apex is the investment holding company of a group of companies engaged in the manufacturing, marketing, distributing and retailing of pharmaceuticals, diagnostics, consumer health products and orthopaedics with direct operations in Malaysia, Singapore, Vietnam and Myanmar.
Apex closed at RM3.90 yesterday on a volume of 10,100 shares.