Sun Pharma today said it has no plans to close manufacturing facilities of Taro Pharmaceutical after acquiring controlling stake in the Israeli company.
"We want to leverage an existing investment of more than $ 200 million in infrastructure and knowledge in Israel to make Taro into a truly great company," Sun Pharmaceutical Chairman and Managing Director Dilip Shanghvi said in a statement while making it clear that the company has no plans to close any of Taro's facilities in Israel.
Since May 2007, when the deal between Taro and Sun was signed, we have talked of building on Taro's current facilities and skill sets, Shangvi said.
The company plans to use all of the existing Taro facilities to the maximum and to increase investment in R&D in Israel. Taro has rich history of building a strong future together with all stakeholders of the businesses it acquires, Sun Pharma said.
A section of media in Israel had earlier reported that Mayor of Haifa had sent a letter to the Minister of Industry, Israel, expressing concerns that after completing the purchase and merger process, Sun intends to close the production lines in Israel and transfer them to India.
Sun Pharmaceuticals had rejected the reports and said it has no plans to close any production lines in Israel rather it would invest in expanding these facilities.
It also accuses management of Taro Pharmaceutical of underutilising the facilities and reducing investments in research and development (R&D).