Corning–SGD Pharma JV opens $60-million glass tubing plant near Hyderabad

A $60-million glass tubing facility established by a joint venture of the NYSE-listed Corning and French firm SGD Pharma near Hyderabad to cater to the pharmaceutical industry opened on Monday, marking formal launch of the production that is expected to touch 13,000 tonne capacity by early 2026, enough to make around 2.2 billion vials a year.

Set up on 11 acres in Vemula, Mahbubnagar, close to the existing vials and ampoules manufacturing facility of SGD Pharma, the plant employs 150 people and provides indirect employment opportunities to several more. Chief Minister A. Revanth Reddy had lit the furnace earlier this month, while groundbreaking of the facility was held in June 2023.

The new plant, for supplying to domestic and export markets, will be evaluated for expansion based on customer demand, including for Corning’s Velocity vial technology that promises enhanced product quality and operational efficiency besides supporting the evolving needs of the pharmaceutical firms. “The inauguration marks a milestone in addressing critical regional needs such as expanded capacity, proximity to customers and localisation of supply chains. This facility will play a vital role in India in accelerating delivery of injectable treatments, supporting local pharmaceutical growth…,” Corning Life Sciences V-P and general manager Chris Hudson said.

Type I borosilicate glass tubing, a critical material used for injectable drug packaging, direct injection delivery systems, diagnostics and biologics, will be manufactured at the plant. With tubing production and (SGD Pharma’s) vial converting co-located, it will also deliver efficiencies in sustainability and product quality, the companies said in a release.

The joint investment for the tubing that will be converted next door into products makes a lot of sense, said SGD Pharma CEO Olivier Rousseau. “We are not only securing a critical part of our supply chain but also bringing world-class technology to one of the fastest-growing pharmaceutical markets,” he said.

The JV has two components – the tubing facility and production on the velocity line, which essentially is a specific coating, at the SGD plant.

For Corning, the new plant is the smallest capacity wise among its plants, for tubing, globally. On the market for vials in India, a leadership team of the two firms that spoke to media estimated it to be 3-4 billion vials a year.  

Corning India managing director Sudhir Pillai said the “project reflects a strong commitment to the region and to our long-term vision”.