UK contract services company establishes manufacturing site in China

Custom Pharmaceuticals, a contract manufacturer of solid dose pharmaceuticals and healthcare products based in Hove in the UK, has taken the decision to set up a manufacturing site in China.

Custom Pharmaceuticals, a contract manufacturer of solid dose pharmaceuticals and healthcare products based in Hove in the UK, has taken the decision to set up a manufacturing site in China.

Finding itself under increasing pressure from lower-cost manufacturers from outside Europe, the company believes it will be able to offer its customers the best of both worlds: the benefit of low cost, high quality product as well as security of supply without having to deal directly with a company outside Europe.

The first step was to set up a Chinese office that sourced low cost, good quality APIs from China. A Chinese director was appointed, who is based in the UK but has strong connections in China particularly in Jinan in the Shandong Province. A suitable building was found in the export zone in Jinan, allowing Custom Pharma to manufacture for the European market without having to pay local taxes.

The 100,000ft2 building is currently being fitted out to EU pharmaceutical standards and is expected to be completed and operational, initially for non licenced medicines, from January 2008. MHRA approval is targeted for the end of 2008.

"The big benefit to our customers is that all communication is through our UK offices," said Jerry Russell, business development director at Custom Pharmaceuticals. "We arrange all logistical aspects from the UK and will communicate with both China and the customer on supply issues.

"In addition, having a manufacturing plant in the UK enables us to help our customer if there is an unexpected increase in demand by producing emergency supplies in the UK. This will be the case for all customers supplied out China," he added.

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