The RM200 million investment project has been approved by the Malaysian Investment Development (MIDA) in July 2020.
MIDA chief executive officer Datuk Azman Mahmud said the expansion reinforces its reputation as a sustainable and profitable investment destination for companies looking to do business in ASEAN and beyond as NEGM being the only company in the region producing high-grade glass tubing for pharmaceutical use.
“Moreover, NEGM’s expansion is timely as the company seeks to increase its production to not only expound on the industry’s growth but also to carry out its humanitarian role in responding to the market’s needs during this pandemic,” he said in a statement today.
In recent years, MIDA said the steady advancements in medical technology have increased the demand for high-grade pharmaceutical glass tubing globally and moreover, as COVID-19 vaccines are being developed around the world, concerns raised on risks of limited supply of the necessary containers used during clinical trials.
“Therefore, the company hopes to play its part to control the COVID-19 pandemic and its eventual cure in vaccine production by ramping up the production capacity of its niche product,” it said.
It also said that NEGM’s latest project would increase the group’s production capacity of glass tubing for pharmaceutical use by about 1,000 tonnes per month, a 30 per cent increase in its current production capacity.
NEGM is a subsidiary of the Nippon Electric Glass Co Ltd (NEG), a leading Japanese speciality glass manufacturer, producing high-grade pharmaceutical glass tubing used for pharmaceutical containers such as ampoules and vials.
To date, NEG has invested more than RM6 billion in Malaysia on various products such as cathode ray tube, glass fibre and architectural glass.