The expansion will increase the plant's total production capacity by 45%, i.e., by several dozen tons per year, for both intermediate products and finished APIs, Olon said.

The new production line will include reactors and filter dryers and is scheduled to be operational in the second quarter of 2024, with a gradual further capacity growth until 2026.

According to Olon, its site in Mahad, which is fully integrated into the company’s platform of 11 plants worldwide with production of more than 20 APIs and intermediates for the rest of the group by synthetic route, has developed a particular leadership position in the fermentation production of the rife family (rifampicin, rifaximin) and its intermediates (Rifa S, Rifa O).

The planned expansion is part of the group’s strategy to increase its overall production volumes, supporting expected growth in the coming years, as Olon plans to use a part of the intermediate products at other sites in its manufacturing network.

At the Mahad site, Olon has only recently installed a new high-containment production line and a major upgrade of fermentation capacity, as well as new systems for generating renewable energy.