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Kobayashi Pharmaceutical plans Chines...
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Kobayashi Pharmaceutical plans Chinese factory
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OSAKA — Kobayashi Pharmaceutical will build a plant dedicated to producing herbal extracts for traditional Chinese medicine in China, where herbs are readily available at lower prices.

The new plant in Anhui Province, which calls for an initial investment of around 1 billion yen ($8.02 million), is expected to begin operation in September 2016. It will be run by a joint venture with JPS Pharmaceutical, a Yokohama-based maker of generic drugs.

Kobayashi Pharmaceutical, an Osaka-based manufacturer of cooling gel sheets and body warmers, looks to ramp up sales of traditional Chinese herbal medicine known as kampo in Japan. It markets 19 varieties, including a weight-loss drug. At roughly 9 billion yen, annual sales of this business have grown more than 10 times over the past decade.

The plant will be constructed next to the company’s Anhui factory, where the mainstay cooling sheets and body warmers are manufactured.


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