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Johnson & Johnson Invests $18M In Cape Town Pharma Plant Upgrade, Plans To Add 130 Jobs

Johnson & Johnson Invests $18M In Cape Town Pharma Plant Upgrade, Plans To Add 130 Jobs

Johnson & Johnson, a U.S.-based manufacturer of medical devices and pharmaceuticals, spent $18.2 million refurbishing its pharmaceutical manufacturing plant in Cape Town and it plans to add 130 jobs in the next five years, the company said in a press release.

The money was invested in technology and infrastructure to meet aggressive growth targets the organisation has set for itself. Johnson & Johnson wants to triple its business in the next five to seven years, said Makis Kosmatos, managing director for sub-Saharan Africa.

The company supplies more than 25 markets in sub-Sahara with South African headquarters in Cape Town, and manufacturing in Cape Town and East London.

The Cape Town manufacturing facility supplies local market, sub-Saharan Africa and Australia with products including Listerine, Benlin, Mylanta, Sinutab and Rehidrat.

The East London manufacturing saw $4.9 million in infrastructure and technology investment over the last few years, with another $9.1 million planned for the next three years. Products made at this plant include Johnson’s Baby, Johnson’s Adult, Savlon and Stayfree.

“We have now created a footprint where we can double our current headcount of 130 in the next five years and triple our current production capacity,” said site leader Alex Granados at the official opening.

“We have ambitious plans to grow our business both within South Africa and in the key markets within Sub-Sahara Africa that we serve,” Kosmatos said. “With local manufacture, the right products and our great people, we are confident that we will realize our ambition of tripling our business within the next five to seven years.”.

The Cape Town plant won an internal award in 2015 for most-improved cost competitiveness among 30 Johnson & Johnson plants worldwide. “This tells us that South Africa has the capability to provide a facility for world-class manufacturing, and that our people, our operations, our organisations and our support programs are able to support and sustain world-class manufacturing in South Africa,” said South African Minister of Trade and Industry Rob Davies, who made the key note address. “Manufacturing remains critical to the future of this country.”

South Africa needs more value-added activities, Davies said. “We are working with foreign investors and with manufacturers who are beginning to see the value of making investments, the value of expanding investments in South Africa and the value of the assistance that we are able to provide,” he said.

Johnson & Johnson has done business in South Africa for more than 86 years.