Stada invests USD101 M in Saudi Arabia manufacturing plant to supply Middle Eastern markets

SAUDI ARABIA—Germany’s pharmaceutical company Stada plans to invest more than €85 million (USD 101 million) in building a new production facility in Saudi Arabia.

The company announced the project on February 16, positioning the plant as a supply hub for the broader Middle East and North Africa region.

Strategic location in Sudair Industrial City

The facility will occupy a 23,250-square-meter site in Sudair Industrial City, a planned development located 93 miles northwest of Riyadh.

Stada designed the plant with an annual production capacity exceeding 300 million units, focusing on multi-technology solid dosages and manual secondary packaging capabilities.

The company will equip the site with a large-scale warehouse featuring two dedicated cold rooms.

Construction plans include creating approximately 400 new jobs in the country, with operations expected to begin by 2030.

Targeting critical health conditions

The plant will manufacture essential medicines addressing major health challenges across the region.

Cardiovascular diseases and diabetes represent significant health concerns in Saudi Arabia and neighboring countries, making these treatments vital for millions of patients.

Stada aims to serve Saudi Arabia’s population of 35 million people, along with surrounding countries throughout the MENA region.

The company takes a long-term view of its production goals.

During its first five years of operation, the facility projects supplying around 500 million units of cardiovascular drugs.

The company estimates producing 175 million anticoagulant treatments and nearly 250 million diabetes medications for type 2 diabetes patients during this initial period.

The production lineup extends beyond cardiovascular and metabolic treatments. Stada plans to manufacture medicines for central nervous system disorders, including epilepsy and schizophrenia medications, as well as antacids.

Building on established regional presence

Stada brings 15 years of business experience in Saudi Arabia to this expansion project.

The company currently employs over 100 workers in the Gulf nation and already counts Saudi Arabia among its 20 largest markets by sales.

Stéphane Jacqmin, Stada’s executive vice president and head of emerging markets, emphasized the strategic importance of this investment.

He noted that comprehensive local production capacity strengthens Stada’s position as a preferred partner in Saudi Arabia and the broader Middle East, complementing its existing relationships with renowned pharmaceutical companies.

Part of Saudi Arabia’s biotech ambitions

This investment aligns with Saudi Arabia’s declared goal, announced in early 2024, to establish itself as an international biotech hub within 16 years.

Multiple pharmaceutical companies share similar ambitions in the kingdom, with Vertex Pharmaceuticals and Sanofi also signaling intentions to expand biopharma manufacturing operations in the country.

Stada operates across three business segments: consumer health, specialty medicines, and generics.

The company views Saudi Arabia as crucial to its growth strategy outside Europe.