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SINGAPORE : Global pharmaceutical giant Abbott has opened a new manufacturing facility in Singapore, aimed at tapping into the growing demand for child nutritional products.
The 52,000-square metre plant, costing US$300 million (S$450 million), is Abbott's biggest investment in Asia to date. It is looking to further expand its presence in the region, it said.
Demand for child nutritional products is expected to grow by double digits in the Asia Pacific this year. To keep up with demand, Abbott has been injecting more cash into its regional operations.
"Some conventional wisdom would say that this is a tough economy. We think it's exactly the right time for strong companies to position themselves and get stronger... We think it's a good time for us to be making a much stronger move in the Asian markets," said Miles White, Abbott's CEO.
Abbott has also set aside money for research and development. It opened an R&D centre in Singapore - its very first in Southeast Asia - last month, and is targeting to open another such facility next year, which will cost US$20 million.
"We will probably have expansion here (Asia) and I predict that Singapore will be right at the top of that list. Once you have made a substantial commitment somewhere, you tend to add to it. We are looking to expand in a number of Asian markets so we may well make investments elsewhere," said White.
Abbott currently operates 11 nutritional manufacturing facilities around the world.
Abbott's new Singapore manufacturing plant has taken on some 300 staff, 42 per cent coming from Singapore.
Since 2006, Singapore has invested more than US$1 billion (S$1.55 billion) into driving transitional clinical research and attracting international players.
"Asia consists of diverse markets where the consumers' needs for one region may differ from another. As such, Singapore provides a unique vantage point for the more than 20 leading global biomedical sciences companies already here," said Singapore's Minister for Trade and Industry, Lim Hng Kiang.
With strong demand from Asia, Abbott is forecasting double-digit earnings growth this year.
"We have not seen the economy affect Asian markets nearly as much as the US... So we are still forecasting for us double-digit earnings growth this year, and healthy top-line single-digit growth," said Abbott's CEO. - CNA /ls
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