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Drug Manufacturer Mylan Inc. Investing $65 Million In Caguas Plant Expansion
BY LIDA ESTELA RUAÑO
November 14, 2002
Mylan Inc. has begun a nearly $65 million expansion that is expected to almost triple the size of its Puerto Rico staff to 413 by 2005, when the Caguas plant could produce half of the Pittsburgh-based Mylan Laboratories Inc.s generic and brand-name drug products.
Carlos R. Machin, president & general manager of the Caguas Jibaro Industrial Park plant, confirmed the news, saying the first of three phases is almost complete. Investment is expected to be $15 million, mostly in new equipment and remodeling; 75 people have also been hired in this phase.
The second phase, which has already begun in terms of relocating personnel, entails adding between 17,000 square feet and 20,000 square feet of manufacturing space and 10,000 square feet of space for offices, a cafeteria, and a locker area. Another 78 or so employees will be hired.
The third phase will start before the second is completed, by July 2003. This last phase, the largest of the three, will entail constructing a 100,000-square-foot building at a cost of $30 million to $40 million. It will also mean an additional 125 employees.
Construction should take eight months to 10 months, after which the companys production is expected to increase dramatically, to as much as eight times the current numbers. Right now, Mylars Caguas plant is responsible for about 10% of the parent companys annual sales, which were $1.1 billion in fiscal year (FY) 2002. By FY 2005, it is expected to generate close to 50% of the companys production. Mylar is the largest generic drug manufacturer in the States and probably in the world.
Mylan now has 210 employees, including those at a second plant in Cidra, also overseen by Machin. The Caguas plant has three buildings, for a total of 160,000 square feet on a 15-acre site. The company is negotiating with the Puerto Rico Industrial Development Co. (Pridco) to purchase eight acres adjoining the site. The Cidra plant occupies 32,500 square feet on five acres. Machin said there are no expansion plans for the Cidra operations, though they are exploring opportunities.
Mylan was established in Caguas in 1986. Machin has worked for the company since it commenced local operations. He estimated current total investment in Puerto Rico at $70 million. The parent company has two other manufacturing sites in the States, one in St. Albans, Vt., and the second, larger one in Morgantown, W. Va.
This Caribbean Business article appears courtesy of Casiano Communications.