Star Combo Pharma is investing $11 million to expand its manufacturing capabilities at its wholly-owned TGA-licensed nutraceutical manufacturing site in NSW.
The company announced that the expansion plans will involve upgrading the existing facility and the installation of 13 new production lines.
Star Combo CEO Su Zhang said the investment underpins the company’s strategy to become a leading contract manufacturer in the premium vitamins and dietary supplement sector. It is also a testament to Star Combo’s commitment to keeping manufacturing onshore.
“We expect demand for Australian made products to continue to grow both domestically and internationally. Our competitive position will be significantly strengthened with this transformational investment and I’m excited with the future prospects for the company. I also look forward to working closely with our new investor (Goldenmax International Technology Limited) to leverage both their process manufacturing knowledge and extensive sales and distribution network as we commission the new production lines,” Ms Zhang said in a statement.
According to the company the capital investment will enable Star Combo to cost effectively address the growing demand in both local and overseas markets for Australian made premium vitamins and dietary supplements. Approximately $5 million will be invested to upgrade the existing manufacturing plant and a further $6 million for the acquisition and installation of additional plant to establish 13 new production lines.
The project will commence in September 2020 and will be completed within two years. The investment is the result of extensive due diligence and evaluation of growth options, and is expected to deliver a substantial ROI with a full return on investment within three years of the lines being in production.
In August Star Combo announced that it acquired 3700 square meters of land to construct a modern R&D and Test Laboratory facility, as well as the expansion of their manufacturing capabilities with a new milk powder facility.