West Pharmaceutical Services'
) indirect subsidiary, West Pharmaceutical India Packaging Private
Ltd., has commenced the construction of a new compression molding
facility in Sri City, India. The facility will be a quantum of the
company's global logistics of its remarkable international standard
pharmaceutical packaging components.
Earlier this year, West Pharmaceutical forged a contract to
lease an area of 72,800 square meters for 99 years in Sri City
Special Economic Zone (SEZ). Sri City boasts of an urban location
with special benefits of an SEZ, was selected on the basis of
availability of utilities, appropriateness of labor, supply chain
facility and living standards, among others.
The first plant in India underlines the company's focus on
business expansion in Asia. According to the company, the Indian
facility will support its effort to meet the dynamic and burgeoning
market demand, especially in the Asia Pacific region. The move is
also expected to form an accord with the projected consumer base of
West Pharmaceutical in India.
The construction of Phase 1 of the facility, which will
manufacture metal and elastomeric pharmaceutical components to be
used in the packaging of the company's injectable medicines, has
already begun. The set-up area of Phase 1 is 15,300 square meters.
The commercial production of metal components is not expected to
begin before the first quarter of 2014, while production of a
variety of premium elastomeric components is expected to commence
in the first quarter of 2015.
Manufacture of ready-to-use sterilized components will actualize
in 2016. Construction of Phase 3 is expected to complete in 2023
with a total built-up area of 37,700 square meters.
Per management, the new plant will facilitate timely supply to
the company's customers in India. Also, West Pharmaceutical will be
able to monitor its costs of production based on the improved
global supply chain as well as process engineering know-how.
West Pharmaceutical is a global leader in the provision of drug
administration systems and components for packaging as well as
delivery of injectable drugs and delivery system components across
various industries. Its compression molding facility in China is
under construction and is expected to be completed at the end of
West Pharmaceutical has a significant competitive advantage in
the market it serves. Additionally, it continues to make headway
into new geographies to expand its business.
However, macroeconomic pressure across the globe remains a
West Pharmaceutical, which competes with
) in certain niches, currently has a Zacks#2 Rank, which translates
into a short-term Buy rating.
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