CAPS Holdings’ penicillin plant, which was closed in 2002, will re-open this month.
CAPS director, Fred Mtangah, tol
d businessdigest this week that refurbishment of the plant was complete and operation would resume before the end of the month.
“The plant is set to resume production this month. What is now left is to obtain approval from the regulatory authorities,” Mtangah said.
The refurbishment of the plant started during the first half of the year.
To date CAPS has spent more than $150 million on the refurbishment exercise, about half of which was raised through a rights issue. The balance was financed from working capital and short-term loans.
The refurbishment of the Manchester Road plant is said to be progressing well and is scheduled to be completed during the current reporting season.
The pharmaceutical company has started exporting drugs to Tanzania and will soon spread its wings to Angola and the Democratic Republic of Congo.
South Africa, Botswana, Mozambique, Namibia, Lesotho, Swaziland, Mauritius, Tanzania and Uganda are the major destinations for CAPS products.
The group recorded a turnover growth of 830% to $1,3 billion for the interim period ending June, compared to $145,5 million achieved during the same period.
Turnover growth was stifled by reduced volumes, but the company said prudent stock management, cost containment and gross margin management enabled it to record above inflation growth in profit.