Astra To Invest Skr800m In China

Astra, the Swedish pharmaceuticals group, on Wednesday announced a SKr1.9 billion ($234 million) investment package to expand its presence in the fast-growing Chinese market and increase output of respiratory products. The company, one of Europes largest drugs manufacturers, said it planned to invest SKr800 million on a plant near Shanghai, while spending SKr1.1 billion on production and research facilities in Sweden. Astra justified the investment citing a 40 per cent sales increase in China last year. At the same time, the company said it would increase output of inhalers from a new SKr800 million plant in Sweden and spend SKr300m on a protein research laboratory. The group said the investment package underlined Astras commitment to emerging markets and its emphasis on research and development - an area where spending rose 24 per cent to SKr8.7 billion last year. The plan was announced after Astra reported a 13 per cent increase in fourth-quarter earnings, with pre-tax profits rising from SKr3.37 billion to SKr3.8 billion on improved sales of SKr12.5 billion, against SKr10.9 billion. For the year as a whole, pre-tax profits rose 8 per cent to SKr14.3 billion, on sales of SKr44.9 billion, compared with SKr39 billion.