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Teva to invest $148 million in local facilities
Pharmaceutical giant to funnel bulk of investment to Ramat Hovav's Teva-Tech. Company to be granted strategic investor status by Industry, Trade and Labor Ministry
Teva Pharmaceutical Industries announced Monday that it intends to invest $148.61 million in its Israeli facilities over the next three years.
The bulk of the investment will go towards expanding the company's chemistry division, especially Teva-Tech – its facility in Ramat Hovav.
The investment grants Teva "strategic industrial investor" status (SI). Given by the Industry and Trade Ministry, it exempts Teva from paying taxes on future revenues generated from the investment. Any dividends paid to the company's investors as a result of the new investment would also be exempt from taxes.
The "strategic industrial investor" status was created in early 2006 and is given to companies which invest at least $150 million in their facilities in a three-year period.
Companies eligible for SI status must also show about $1 billion in sales per-annum – Teva's sales in 2006 came to $8 billion.
