[Ip-health] MEDIA STATEMENT BY THE SOUTH AFRICAN GOVERNMENT ON THE ESTABLISHMENT OF A PHARMACEUTICAL MANUFACTURING PLANT IN SOUTH AFRICA

Jamie Love james.love at keionline.org
Fri Feb 10 15:08:05 PST 2012


-----Original Message-----
From: Anso Thom <anso at health-e.org.za>
Sender: druginfo-bounces at lists.hst.org.za
Date: Fri, 10 Feb 2012 13:57:31
To: Drug Information & Policy Information<druginfo at lists.hst.org.za>
Subject: [druginfo] FW: statement by Minister of science and Technology

From:  Media_liaison <Medialiason at gcis.gov.za>
Date:  Fri, 10 Feb 2012 11:54:36 +0000
Subject:  statement by Minister of science and Technology


MEDIA STATEMENT BY THE SOUTH AFRICAN  GOVERNMENT ON THE ESTABLISHMENT
OF A PHARMACEUTICAL MANUFACTURING PLANT IN SOUTH AFRICA
Cape Town (South Africa), 10 February 2012

We are pleased to  announce to the media a joint venture between the South
African government through Pelchem (Pty) Ltd and a leading global
pharmaceutical company Lonza Ltd.  We agreed to make the announcement today
following the Cabinet decision because the international partners are
visiting South Africa at the moment

This joint venture named ³Ketlaphela², will establish the first
pharmaceutical plant to manufacture Active Pharmaceutical Ingredients (APIs)
for Anti-Retroviral Medicines (ARV¹s) in South Africa.  ³Ketlaphela² is a
Sesotho word meaning ³I will live or survive².

The new pharmaceutical company will be created in partnership with the Swiss
company Lonza and the South African state-owned company Pelchem (Pty) Ltd, a
subsidiary of the Nuclear Energy Corporation (NECSA).  The new company will
be funded by a capital investment of R1-billion by various state
institutions including the Industrial Development Corporation; more than
500­million Rand from Lonza; and  R100-million from Pelchem/NECSA in land
and infrastructure.  The total investment is R1,6 billion for the project.

Ketlaphela will be a truly South African company with a significant
government ownership component through Pelchem and the IDC.  The South
African state-owned company Pelchem is a leading speciality chemical
manufacturer, and is the sole producer of flourochemicals on the African
continent. Pelchem plays a leading role in South Africa¹s flourochemical
expansion inititiative in partnership with the departments of Trade and
Industry and Science and Technology.

The Flourochemical Expansion Initiative (FEI) is an attempt to increase
beneficiation  of South African mined fluorspar to counter the trade deficit
in chemical products. The reason for the FEI is because South Africa holds
the second largest fluorspar reserves in the world outside China and is an
important international supplier of fluorspar to hydrogen fluoride
producers. Pelchem is the only compoany in South Africa that beneficiates a
small percentage of locally mined fluorspar into higher value fluorochemical
products and therefore plays a leading role in the FEI.

Our partnership with Lonza is based on the fact that Lonza is one of the
world¹s leading suppliers of various products of pharmaceutical, healthcare
and life sciences industries and is a global leader in the production and
support of API¹s, in cell-based research, endotoxin detection and cell
therapy manufacturing.  Lonza¹s high Swiss standards plus their superb track
record of establishing and maintaining successful commercial operations in
developing countries, make them a valuable and highly desirable partner.

This initiative  is a joint initiative by the departments of Science and
Technology, Trade and Industry, Health, and Economic Development and will
firstly address the burden of  communicable diseases such as HIV and Aids,
Tuberculosis and Malaria and later on non-communicable diseases such as
diabetes, hypertension and cancer.

The project is in line with plans of the South African government to address
HIV and AIDS through the local and cost effective production of
antiretroviral drugs. Ketlaphela will leapfrog South Africa into the 21st
century as far as local pharmaceutical manufacturing is concerned. It will
also provide new opportunities for South African scientists and
pharmaceutical companies.

Ketlaphela will reduce the country¹s dependence on imported drugs and will
provide security of supply of priority drugs, stable pricing with less
sensitivity to exchange.  The consortium has entered into negotiations with
the South African government with the aim of delivering the first fully
South African manufactured ARVs from 2016 onwards. While most of the
medicines used in our current ARV treatment regiment are manufactured by
local pharmaceutical companies ­ currently, four South African companies are
capable of formulating generic ARVs ­ all APIs are imported. APIs account
for 50% to 75% of production of generic ARV in the finished-dosage form.

The new facility will be built at the Pelindaba site of NECSA/Pelchem in
Gauteng and will be a massive boost to the local pharmaceutical industry,
creating an estimated 2200 jobs in the process.  These jobs will include
direct and indirect  jobs in both the formal and informal sector of the
economy. An estimated 3800 jobs will be created during the construction
phase.

An interdepartmental task team comprising the Departments of Science and
Technology, Trade and Industry, Economic Development, Health, and Energy has
been established to negotiate the modalities and incentives necessary to
ensure the financial viability of the Ketlaphela project, under the guidance
of Minister Naledi Pandor, Minister of Science and Technology.

The Ketlaphela project will contribute to meeting the objectives of the
Department of Trade and Industry¹s Industrial Policy Action Plan (IPAP),
which includes diversifying the South African economy towards higher
value-added manufacturing, creating jobs, especially quality &
knowledge-related jobs and thus controlling the trade balance.  IPAP has
identified the pharmaceutical industry among the ³priority sectors²,
highlighting the economic and strategic importance of domestic manufacture
of antiretrovirals (ARVs) and active pharmaceutical ingredients (APIs).  The
Department of Trade and Industry will assist the project through various
economic incentives to promote local manufacturing.

Ladies and gentlemen, the South African government is very excited by the
potential of this joint venture and is looking forward to providing South
African solutions to our health needs.


Ends

For further Information

Dominik Werner
Head of Corporate Communications
Lonza Group Ltd
Tel        +41 61 316 8798
Fax       +41 61 316 9798
dominik.werner at lonza.com


Tommy Makhode
Head of Communications
Department of Science and Technology
Tel        +27 21 469 5019
Mobile +27 82 379 8268
tommy.makhode at dst.gov.za


Sidwell Medupe
Head: Media Liaison
Department of Trade and Industry
Tel        +27 12 394 1650
Mobile +27 79 492 1774
MSMedupe at thedti.gov.za

Saleem Mowzer

Special Advisor to Minister Ebrahim Patel

Economic Development Department

082 808 8135
Notes to Editors



About IDC

Established in 1940, the IDC is a national development finance institution
set up to promote economic growth and industrial development, wholly owned
by the South African government under the supervision of the Economic
Development department.  Visit us on www.idc.co.za <http://www.idc.co.za>



About Pelchem

Pelchem is a 100% subsidiary company of the South African Nuclear Energy
Corporation (Necsa) with a business focus on the fluorochemical industry.
It plays a strategic role in supporting Necsa and government plans for a
nuclear fuel programme in the country.

South Africa holds the second largest fluorspar reserves in the world
outside China and is an important international supplier of fluorspar to
hydrogen fluoride producers.  The South African chemical sector development
strategy includes a priority programme, the Fluorochemical Expansion
Initiative (FEI), to increase beneficiation of South African mined fluorspar
to counter the trade deficit in chemical products.  Pelchem is the only
company in South Africa that beneficiates a small percentage of locally
mined fluorspar into higher value fluorochemical products and therefore
plays a leading role in the FEI.

Pelchem manufactures and markets anhydrous hydrogen fluoride (AHF),
hydrofluoric acid, fluoride containing salts, fluorine gas, and
specialityfluoride containing gases and fluoro-organic monomers to local
industry and to selected international customers.  These products are used
in the petroleum, pharmaceutical, glass, electricity, metallurgical, mining,
polymer, agrochemical, electronics, construction, aluminium and detergent
industries.

Consumers benefit daily from products which are manufactured, processed or
enhanced using fluoride containing chemicals.  These include high octane
fuel; anaesthetics; metered dose inhalers; polished crystal glasses; frosted
glass; electrical insulators; foam insulation and packaging materials;
special alloys in aircraft and turbines; telephones; cell phones; diamonds;
domestic and industrial refrigeration; non-stick cookware; plastic
components in automotive applications; electrical cable insulation; beverage
cans; pesticides and herbicides in agriculture; microchips for domestic
appliances and computers; memory chips in computers, iPods, flash memory
sticks; liquid crystal displays (LCD) on electronic components and LCD
televisions; cement; alloy wheels; gaming devices; automotive safety devices
(airbags); aluminium foils; designer stainless steel kitchen ware; stainless
steel automotive components; soaps and washing powders; fluoride toothpaste,
fluoride tablets and fluoride dental treatment.

About Lonza

Lonza is one of the world's leading suppliers to the pharmaceutical,
healthcare and life science industries.  Products and services span its
customers¹ needs from research to final product manufacture. It is the
global leader in the production and support of active pharmaceutical
ingredients both chemically as well as biotechnologically.
Biopharmaceuticals are one of the key growth drivers of the pharmaceutical
and biotechnology industries.  Lonza has strong capabilities in large and
small molecules, peptides, amino acids and niche bioproducts which play an
important role in the development of novel medicines and healthcare
products.  Lonza is also the world leader in microbial control providing
innovative, chemistry-based and related solutions to destroy or to
selectively inhibit the growth of harmful microorganisms. Its activities
encompass the areas of water treatment, personal care, health and hygiene,
industrial preservation, materials protection, and wood treatment. In
addition,  Lonza is a leader in cell-based research, endotoxin detection and
cell therapy manufacturing.  Furthermore, the company is a leading provider
of value chemical and biotech ingredients to the nutrition and agro markets.

Lonza is headquartered in Basel, Switzerland and is listed on the SIX Swiss
Exchange and secondary listed on the Singapore Exchange Securities Trading
Limited (³SGX-ST²). Lonza is not subject to the SGX-ST¹s continuing listing
requirements.  Lonza is subject to the listing rules of the SIX Swiss
Exchange, which do not have specific requirements equivalent to the listing
rules of the SGX-ST in respect of interested person transactions,
acquisition and realizations, and delisting. In 2011, the company had sales
of CHF 2.69 billion. Further information can be found at www.lonza.com
<http://www.lonza.com/> .




More information about the Ip-health mailing list