Bosch Packaging has started work on a second production facility in Chengdu, China to increase manufacturing capacity.
The company already runs a processing machinery plant in Hangzhou, but predicts that production will hit its limit within the next three years. As a result the firm has pumped €17m ($23m) into the new plant, located within a 66,000 sq meter plot in Chengdu, Pujiang county.
"Ten years ago, we started up in China with 14 associates. Since then, our sales have continuously increased,” said Friedbert Klefenz, president of Bosch Packaging Technology.
Through the new plant, Bosch will continue its current activities which includes capsule filling and tablet pressing, but hopes to extend its reach within the Western region of China.
A company spokeswoman told in-PharmaTechnologist: “We will be working with anything from big global companies, to smaller pharmas, to big Chinese pharma companies who are investing a lot into health care.
“The West of China is a very attractive area to be right now. There’s about 250 million people living in the area and it’s a growing market.
“There are lots of suppliers in the region, and there is a centre for packaging machinery producing companies building up there, so this is a real hot spot for this kind of development.”
She added: “There are also universities in the area where we can hire our technicians and professionals.”
Bosch plans to add 300 people to the new facility by the time the first phase is completed in 2015, in addition to its 400 employees at its plant in Hangzhou.
The spokeswoman added: “We need highly qualified technicians and for that we will be looking to the local universities and promoting them within the company.”
She also told in-PharmaTechnologist that the move reflected Bosch’s strategy to work locally within emerging markets.
“Of course, from our China facilities, we’ve have the capability to send machinery all around the Asia Pacific region, but ultimately we build up companies to serve local need," he said.
“What is very interesting is that because we are local in China, India and Brazil, we can also install our really highly complex machinery as used in Europe and the US.
“We have from low to mid out put machinery to the high end complex systems which would normally have been produced in Europe.”