Perrigo to expand Yeruham plant for $40m

The expansion is part of a long-term plan to invest NIS 280 million in its Israeli facilities.

Perrigo Company (NYSE:PRGO; TASE:PRGO) will invest $40 million to expand its facility in Yeruham. The Investment Promotion Center has already approved first stage of the plant's expansion to upgrade its production lines, laboratories, and storerooms at a cost of $23 million. The second stage involves construction of a state-of-the-art facility. The current plant was built in the 1980s.

Perrigo said that the plant expansion was part of a long-term plan to invest NIS 280 million in its Israeli facilities. In addition to the Yeruham plan, the multinational drug company has a plant for the production of active pharmaceutical ingredients (APIs) in Naot Hovav (formerly Ramat Hovav).

The Yeruham plant produces 40 products that are exported worldwide, and extensive R&D operations for prescription drugs. The formulations developed at the center include treatments for malignant skin tumors, skin infections and fungi, allegories and pulmonary problems, intestinal diseases, hypertension, and hormone imbalances.

Perrigo has 900 employees, 40% of whom have academic degrees, at the two Negev facilities. It declined to say whether it plans to expand its workforce as part of the new investment.

Perrigo's exports from Israel totaled NIS 1.4 billion in 2013, of which the Yeruham plant contributed NIS 650 million. The company's global turnover is $4 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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