GERMAN pharmaceutical maker Boehringer Ingelheim and Shanghai Zhangjiang Biotech and Pharmaceutical Base Development Co will invest 500 million yuan (US$81.4 million) to build a research and development and manufacturing facility in Shanghai.

Boehringer Ingelheim said yesterday it will invest over 35 million euros (US$46 million) for the first phase of the facility which will be sited in the Zhangjiang High-tech Park in the Pudong New Area. The facility may become operational by early 2016.

The Zhangjiang Group will provide 150 million yuan in the form of land and factory in the first phase.

"Biopharmaceuticals, together with prescription medicines, consumer health care, animal health and manufacturing, will become the five pillars driving our business in China," said David Preston, chairman and chief executive officer of Boehringer Ingelheim China and Hong Kong.

The German company may also become the first multinational drug manufacturer to provide contract manufacturing services for local companies.

"The contract manufacturing facility is expected to lower production cost for smaller start-up companies and ease their capital pressure," said Wang Lanzhong, general manager of the Shanghai drug company. "It will also help to boost Shanghai's biopharmaceutical industry."