Leading pediatric nutrition products provider Mead Johnson Nutrition Company (MJN) recently inaugurated its new production and research campus in Tuas, Singapore. This infrastructure facility reflects the company's largest single investment project till date.
The new facility has the capacity to house 180 new employees for production and science positions, resulting in total staff strength of 250 currently working for Mead Johnson in Singapore. This includes employees at the regional headquarters that the company had opened two years back.
Per management, the investment reflects Mead Johnson's acknowledgement of the double-digit growth in its product demand in the Asian market over the past decade. It is also indicative of the company's prospective expansion plans in this part of the world in the near future.
This new facility holds a sophisticated manufacturing unit that will develop primary pediatric products for a number of fast-growing markets in Asia. The center also incorporates a technology and learning center – connected to the company's latest global network of the Mead Johnson Pediatric Nutrition Institute – which will aid in developing more advanced pediatric nutrition science and products.
Per management, situated at the heart of Singapore, this new campus will be supported by the country's robust free-market economy, strong international trade, excellent infrastructure, and commitment to research and education. Innovative products developed in this facility are expected to support healthy growth and nutritious development of new-born babies as well as children, in Singapore and around the world.
As a socially responsible corporate entity, Mead Johnson has been long trying to effectively reduce the amount of waste from its production facilities that goes to landfill. Consequently, the company has decided to maintain the Tuas facility as a “Zero Landfill” operation. The Tuas plant will not send even a single load of waste to landfill during the first four months of operation.
In the last reported quarter, the company's revenues from its Asia business delivered 11% year-over-year growth on a constant dollar basis. With the opening of this facility, we expect the company to confidently expand its business further in the Asian market, particularly in the populous, yet fast-growing countries like China and India.
Currently, Mead Johnson holds a Zacks Rank #3 (Hold). Better-ranked stocks in the medical products industry include ICU Medical, Inc. (ICUI), Conatus Pharmaceuticals Inc. (CNAT) and Eagle Pharmaceuticals Inc. (EGRX). While ICU Medical sports a Zacks Rank #1 (Strong Buy), both Eagle Pharmaceuticals and Conatus hold a Zacks Rank #2 (Buy).
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