Saudi-Japanese JV To Be Based In Jeddah

A Saudi-Japanese joint venture is expected to begin production in 2000at a pharmaceutical plant in Jeddah, costing 180 million riyals ($47.9 million). 51% of the shares in the Saudi Arabian Japanese Pharmaceutical Co Ltd (Sajaphco) will be owned by Farouk & Moamoun Mohamed Said Tamer Industries, while Sankyo, Yamanouchi, Marubeni and the Japan International Development Organization will together hold the remaining stake. Shareholders will put up 72 million riyals in equity and secure the rest through loans, including funding from the Saudi Industrial Development Fund.

Construction of the plant is due to be completed by January 1999, and it is estimated that 90 million tablets and 75 million capsules will be produced a year. Sajaphco initially intends to concentrate on treatments for diabetes and high blood pressure.

Sajaphco will be the second drugs plant to be built by large multinational firms in SA as Glaxo Wellcome already has a facility outside Jeddah. The country is the largest pharmaceutical market in the Middle East, with annual sales of some $850 million.