Fabupharm in N$13 million expansion drive

In an effort to cater for their growing product lines, a local pharmaceutical company based in Otjiwarongo, Fabupharm, has embarked on a growth strategy based on local manufacturing of key medicines.

For the next two years, Fabupharm plans to create more job opportunities as well as increase its support to government attempts to supply medicine around the country, Fabupharm announced this week in Windhoek when it launched its N$13 million expansion project.
The expansion drive by the pharmaceutical manufacturer will see the company set up a new tablet, capsule and sachet specialised plant to be completed by June 2016. The factory will acquire an additional liquid filling line and also start its own plastic bottle manufacturing plant.
Fanie Badenhorst Jnr, Chief Operating Officer at Fabupharm said,“We are in the process of acquiring an additional liquid filling line in order to double the production of our registered medicines, which we supply to the Government Central Medical Stores.”
According to Badenhorst Jnr, the envisaged plant is a complete World Health Organisation (WHO) approved facility.
In terms of setting up a plastic bottle manufacturing plant Badenhorst Jnr said after careful consideration they found it profitable to manufacture their own containers. “Due to the difficulties of timely delivery of our packaging material, we are also looking at establishing a plastic bottle manufacturing plant in Otjiwarongo. We are in negotiation for land in the industrial area with the Municipality of Otjiwarongo,” he added.
In June last year, Fabupharm created more space at the plant to double its production capacity. “The new finished products warehouse has been completed and we have set up more production areas. In the new production areas, we have also added new machines for more efficient manufacturing processes. The production increased and we are delivering products at a much faster rate. The bigger warehouse enables us to keep more stock, thus improving the supply of our fast-moving products,” added Badenhorst Jnr.
Carl Brinkmann, Sales Director at Fabupharm said, “the expansions will enable Fabupharm to provide increased support to the government in their effort to supply medicines to Namibians.”
“Moreover, opportunities exist to export our products to surrounding African countries and to growing the market locally. Our decision to expand is based on the fact that health care is a growing market,” Brinkmann said.
He said that the funds for financing the envisaged projects are sourced from own reserves with no outside investors. “All the profits we have made so far since we started operating have been ploughed back into the company so that we can deliver on our planned expansions.”
Currently Fabupharm produces medicinal products under license from the Namibian Medicines Regulatory Council and distributes products to retailers and pharmacies nationwide. It supplies pharmaceutical products to the government through the official tender process. The manufacturing plant is regularly inspected by the Registrar of Medicines in the Ministry of Health and Social Services and employs up to 70 locals.