300 jobs as US firm confirms first Covid tests plant for Wales
US FIRM Innova Medical is setting up its first rapid Covid lateral flow test-making factory in the UK in south Wales in an investment which will initially create 300 jobs.
The San Francisco-based firm – the world’s largest provider of rapid antigen tests – has reached agreement with Sharp Packaging for it to produce 1.2 million kits a day from its existing factory in Rhymney.
The first kits are expected to roll off a new production line this summer.
The 1.2 million test a day is a starting point with scope for increasing production.
Innova said that 300 jobs formed part of an initial investment in Rhymney running into tens of millions of pounds. However, it also plans to bring Covid antibody testing production
to Rhymney as well as non-Covid testing products, which will create further employment.
The investment was secured by the Welsh Government with a key role played by its US office in San Francisco.
Innova looked at locations across the UK before opting for its first facility in Wales.
It confirmed that it is setting up a second facility in the UK at a yet-tobe-confirmed location in England, which will also have research and development capacity through a tieup with a university.
The Welsh Government is providing financial support for the major inward investment project win.
Innova’s Rhymney operation will be one of the largest facilities of its kind and the first to produce Innova’s lateral flow tests in the UK.
Innova expects production capacity from the facility will meet a significant element of future demand for testing kits procured by the UK Government.
Innova has already supplied the UK with more than one billion lateral flow testing kits.
Chief executive of Innova Medical Group Daniel Elliott said: “Innova understands the importance of speed in the fight against the pandemic and strategic contract manufacturing allows us to start local production quickly.
“By domestically sourcing as much of the processes as possible, we are confident this partnership with Sharp will deliver value to our UK customers. We look forward to the launch of Innova’s lateral flow test production in Wales and to expanding that into other markets and regions across the UK.”
He added: “This is the first of two production sites that we are putting into the UK.”
Mr Elliott would not confirm the location of the second facility, but it will be in England. The chief executive said: “It will come online in mid summer and we will speak more to that in a few weeks.
“This site [Rhymney] is purely production. The second location will be near to a university because it will be for production as well as research and development.
“Rhymney will be 1.2 million [testing kits] now. And it will continue to grow. We will also start to bring in other products, starting with other Covid related products such as antibody testing., but also non-Covid related products will eventually come to each facility. The second site will take longer [to start production], but ultimately will be larger.”
“The 300 jobs in Rhymney is only for the antigen products, so the 300 jobs in Wales is an initial number and will grow and we have a forecast to build that. “
He said Innova products are tested against any new variant of Covid once they become known to verify efficacy.
Sharp UK General Manager Ian Morgan said: “We are delighted to collaborate with Innova to support the manufacturing of its Covid-19 lateral flow test kits, right here in the UK where they’ll be used.
“This important partnership not only allows us to expand our facility by a third, but will add nearly 300 new jobs, providing much needed opportunities for our local community.”
Economy Minister Vaughan Gething said: “Wales welcomes Innova’s investment and the hundreds of new job opportunities it creates, boosting the local economy and further enhancing Wales’ reputation in the life sciences sector.
“Sharp are a first-class company and the Welsh Government is proud to have worked closely with them and supported their expansion which has been crucial in bringing these new quality jobs to Rhymney.”
Gerald Jones, MP for Merthyr Tydfil and Rhymney, said: “Rhymney and the surrounding communities are a great place to establish a business and I look forward to Innova and Sharp being a key part of our community for many
more years to come.”
Innova is ramping up production of its tests worldwide and aims to reach 50 million tests a day by the end of the year.
Mr Elliott said the testing kits were being produced at a margin for the UK Government.
He added: “There is a margin in all business, unless otherwise we are a charity. However, at the same time it is not a large part of the business, but for us we think it is a very meaningful one to invest into. So, we are not necessarily looking for the biggest margin, but a large footprint to help the people of the UK and globally.”
He said production in the UK at the two facilities will initially satisfy just UK demand, but confirmed Innova is having discussions about exports from the UK.