Colorpak is feeling the effects of the Chinese health care system following the re-signing of a five-year, $30 million packaging deal with local pharmaceutical company, AstraZeneca.
The $30 million re-signing deal comes hot on the heels of AstraZeneca’s $80 million investment on new machinery at its Sydney plant to keep pace with rapid growth in demand for a respiratory medicine from the Chinese health care system.
AstraZeneca’s director of manufacturing and supply, Stuart Anderson, says that, as the pharmaceutical company invests in its manufacturing ability with the aim of becoming a major export hub to Asia, the new five-year deal with Colorpak will play an important part of burgeoning growth in exports to China over the next three years.
“Our partnership with Colorpak is an important relationship in delivering the 500 per cent growth of exports that we will experience to China by 2015,” says Anderson.
The five-year deal represents the renewal of an existing partnership between the two companies and, according to Colorpak managing director, Alex Commins, comes with an approximate value of $30 million over the term of the agreement.
“We are very excite to have once more extended our supply partnership with one of Australia’s blue chip pharmaceutical manufacturers,” says Commins. “This is terrific news for our stakeholders and the broader Australian economy.”
After recording a net loss of $3.23 million for the financial year ending June 2012, it is no surprise that Commins is working to reassure Colorpak’s stakeholders with the signing of this deal.
However, it is not the only contract the packaging company has in the lucrative pharmaceutical sector. Colorpak also holds contracts with several other pharmaceutical companies including GlaxoSmith Kline, CSL and Pfizer.