The South African government has announced plans to set up a R1.6 billion plant to manufacture active pharmaceutical ingredients for antiretroviral medicines (ARVs) used in the treatment of HIV and Aids.

The plant, dubbed Ketlaphela, which will be built near Pelindaba in Gauteng, is a joint venture between the SA government, through Pelchem (Pty) Ltd, and Swiss company Lonza Ltd.

“This joint venture will establish the first pharmaceutical plant to manufacture active pharmaceutical ingredients (APIs) for antiretroviral medicines in South Africa," Science Minister Naledi Pandor told journalists in Cape Town.

Pandor said the new company would be funded by a capital investment of R1 billion by various state institutions, including the Industrial Development Corporation; more than R500 million from Lonza; and R100 million from Pelchem, a subsidiary of Necsa (Ltd), the Nuclear Energy Corporation of SA.

"Our partnership with Lonza is based on the fact that Lonza is one of the world's leading suppliers of various products of pharmaceutical, healthcare and life sciences industries and is a global leader in the production and support of APIs in cell-based research, endotoxin detection, and cell therapy manufacturing,” Pandor said.

South Africa currently imports the APIs needed to manufacture antiretrovirals.

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