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News Release2017

Apr. 10, 2017

Accelerating JGC’s Overseas Expansion in the
Pharmaceutical Plant EPC Business

- Strengthening the Company’s Asian Bases and
Formation of Strategic Partnership with IPS of the US

Yokohama, Japan – JGC Corporation is further strengthening its marketing activities in order to win overseas EPC (Engineering, Procurement and Construction) pharmaceutical projects, as part of the expansion of its business activities into infrastructure projects called for in the company’s Mid-Term Management Plan (Beyond the Horizon). 

1. Strengthening Asian business bases

In Southeast Asia, against a background of population growth, increases in personal incomes and living standards, together with the improvement of insurance programs and ageing populations, the market size for pharmaceuticals is expanding annually.

In Vietnam, whose population of 90 million is third among ASEAN countries and where these trends are especially noticeable, JGC Vietnam, the Vietnamese subsidiary of the JGC Group, will open its Ho Chi Minh Office in April 2017 with a view to strengthening business activities related to pharmaceutical plant construction projects.

From this new office, JGC Vietnam will accelerate its sales activities aimed at not only Japanese and western-owned companies but also Vietnamese pharmaceutical companies, with a view to winning contracts in fiscal 2017 in cooperation with JGC.

In addition, the Vietnam office will serve as a base for JGC to advance client development and identification of potential projects in neighboring countries (for example, Cambodia, Laos and Myanmar) as well as through cooperation between JGC Yokohama and other group companies in the ASEAN nations (JGC Singapore, JGC Malaysia and JGC Philippines, among others.) 

Moreover, we will strengthen sales activities in China where continuing investment in the pharmaceutical field, including expansion and/or modification of existing pharmaceutical plants is expected, by utilizing JGC China Engineering Co. Ltd. which has been operating since July 2016.  In collaboration with the JGC Yokohama Head Office, it is aiming at winning contracts for EPC projects planned in China by maximizing technical proposal capabilities and cost competitiveness, as well as by establishing an optimized project execution organization.

2. Collaboration with US EPCM & CQV Services Company

On November 2016, JGC signed a memorandum of understanding with IPS-Integrated Project Services, LLC (See Note 1), a US EPCM & CQV (Engineering, Procurement, Construction Management, and Commissioning, Qualification and Validation services company, for co-work in the field of the Life Sciences industry, including Pharmaceutical, Biotechnology and Medical Devices.

Through cooperation with IPS, which has numerous clients including western mega-pharmaceutical companies and enjoys a high level of familiarity with their needs, JGC plans to contribute to the realization of the expansion plans of these companies in Asia.  At the same time, it wishes to promote the advance into Asia, Europe and America by Japanese pharmaceutical companies.  Under the memorandum of understanding, JGC is developing with IPS proposals for new pharmaceutical plant investment plans for plants in Asia planned by European and American companies.

The JGC Group will push forward with its preparations to capture prospective overseas orders to add to domestic projects already awarded in the life sciences area (pharmaceuticals and medical services) and to continue to grow this market segment through 2020.

Note 1:

Outline of IPS-Integrated Project Services, LLC

  • Established: 1989
  • Headquarters: Blue Bell, Pennsylvania, USA
  • Employees (Entire Group): Circa 1,000 
  • Services: Global provider of technical consulting, design, engineering, construction management, project controls and compliance services for technically complex development and manufacturing facilities worldwide, with expertise primarily in the biopharmaceutical and life sciences industries. 
  • Offices and Overseas Locations
・United States: (Pennsylvania, California, Indiana, Kansas, Massachusetts, New Jersey, and North Carolina)
・Overseas Locations: (Canada, Brazil, United Kingdom, Switzerland, Singapore, China, and India)

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