New Straits Time, June 20, 2008
RM450m biotech boost
for Malacca
From Shahriman Johari
SAN DIEGO: Vivo Bio Malaysia Sdn Bhd, a subsidiary
of India's Vivo Bio Tech Ltd, will spend RM450
million to build a contract research and
manufacturing facility in Malacca.
It will be doing work for pharmaceutical companies
that are developing drugs to treat cancer and
diabetes, among other illnesses.
The investment is set to be Malacca's biggest in
biotechnology thus far.
"This is a world-scale-size facility," said Datuk
Kuna Sittampalam, director of Vivo Bio Tech. Kuna, a
Malaysian, holds 15 per cent of Vivo Bio Tech, which
is listed on the Bombay Stock Exchange.
Vishwanath Komplella, chairman of Vivo Bio Tech,
expects the plant to be ready for operation by the
end of 2010 as construction is due to start at the
end of this year.
"We are moving at an amazing speed. We have done
initial layouts and we are close to the finalisation
of drawings," he told Malaysian reporters at a
briefing on the sidelines of BIO 2008, a global
biotechnology event, on Wednesday.
The integrated facility will be located on 17.2ha in
Rembia, Alor Gajah.
Melaka Biotech Holdings Sdn Bhd, the state
government's biotechnology arm, will hold 20 per
cent of Vivo Bio Malaysia in exchange for providing
the land.
Vivo Bio Tech has a controlling 51 per cent, while
the rest is held by Vanguard Creative Technologies
Sdn Bhd, a firm owned by Datuk Chandrakant S.N.
Avalani and his partners.
Vivo Bio Tech, Melaka Biotech and Vanguard exchanged
the agreement documents at a ceremony witnessed by
Science, Technology and Innovation Minister Datuk Dr
Maximus J. Ongkili, Malacca Chief Minister Datuk
Seri Ali Rustam and Malaysian Biotechnology Corp
chief executive Datuk Iskandar Mizal Mahmood.
Meanwhile, Ali said Malacca has already secured
foreign investments worth some US$2 billion (RM6.5
billion) this year, almost half of the amount
received over the last seven years.
The interest is coming from biotechnology and
manufacturing companies, he said.
"From 2000 to 2007, we attracted some US$4.8 billion
(RM15.6 billion) of foreign direct investment," Ali
said.
Malacca's yearly foreign investment target is RM3
billion.
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