AZ invests in China, cuts jobs in US

AstraZeneca (AZ) is to increase its investment in China with a new manufacturing facility worth $200m to be built in China Medical City, Taizhou, Jiangsu province.

The announcement follows the pharmaceutical company's decision to 'streamline' its US business with the loss of 400 positions at the company's headquarters at Wilmington, Delaware in the US.

The site in China, which will produce both intravenous and oral solid medicines, is AZ's largest ever investment in a single manufacturing facility, with construction due to be completed by the end of 2013.

The company said the facility would allow AZ to meet growing demand in China for its products and expand availability to urban and rural communities.

Revenue for the company in the country for the first six months of 2011 stood at $625m, an increase of 22 per cent on the same period in 2010.

This compared to a 7 per cent decrease in revenue for the company in the US from the first half of 2010 to the first half of 2011.

Regarding the cost-cutting measures in Wilmington, AZ cited pricing pressures and the rise of generic competition as reasons for the decision.

Rich Fante, president, AZ US and CEO, North America, said: "These changes are necessary to build a leaner, more efficient organisation that will enable the company to continue delivering against our mission of patient health and sustaining a strong business for years to come."

Related links

Country report: China