Haleon Allocates R500 Million to Boost Exports at Cape Town Facility

Haleon, the world’s leading self-care company, has announced an investment of R500 million into its manufacturing facility located in Cape Town. This initiative is part of a broader strategy to enhance export capacity and improve access to daily health products across Africa.

The announcement was made at Haleon’s Epping production site in Cape Town on 21 August during a meeting aimed at presenting its progress in health inclusivity and sustainable manufacturing methods.

Boosting capacity for future development

The Epping facility is among the largest production sites for powder medicines worldwide, generating about one billion stick packs of Grand-Pa headache powders annually. For over a century, Grand-Pa has been a household name in South Africa.

Operating 24/7, the Cape Town site also manufactures other popular brands like Med-Lemon, Eno, Centrum, and Scott’s, to name a few.

This new investment allows Haleon to enhance production capabilities, upgrade technology, and set the stage for an expanded export initiative into Southern Africa by 2026, followed by deeper penetration into sub-Saharan markets in 2027.

This expansion builds on an existing export framework that currently spans 13 markets globally, including eight African countries, as well as regions like Australia, New Zealand, Portugal, Spain, and Canada.

“This R500 million investment will enable us to operate more efficiently and broaden our reach across the continent,” explains Cindy Carter, Haleon South Africa’s end-to-end supply chain lead and site director.

“Our Cape Town facility symbolizes Haleon’s commitment to empowering individuals to take charge of their health,” adds Farhan Haroon, Haleon SA’s general manager.

He stresses that local manufacturing of self-care products is vital for improving Africa’s readiness for pandemics. “Haleon’s Cape Town facility helps reduce reliance on global supply chains,” Haroon states.

With another facility in Johannesburg producing Aquafresh and Sensodyne, along with a logistics hub, Haleon aims to position South Africa as a growth engine for the region.

Advancing local production and sustainability

About 85% of Haleon’s sales in South Africa are generated locally, supported by a supply chain where approximately 80% of raw materials are sourced domestically. The company aims to increase this figure to 90%, according to Carter.

Sustainability is a fundamental aspect of Haleon’s operations. The Cape Town site has become the first in Haleon’s global network to achieve water neutrality and earn Alliance for Water Stewardship certification, maintaining a zero-to-landfill status since 2014.

Recent sustainability initiatives include a biomass-based steam supply, an increase in solar panels, and a reduced reliance on the national power grid.

Innovations in packaging are also underway, such as replacing aluminum foil in toothpaste tubes with recyclable polypropylene and phasing out virgin plastics, reports Carter.

Strengthening public health systems

South Africa is one of Haleon’s primary markets, with well-known brands integral to daily routines. “Grand-Pa is regarded as the ‘grandpa of the country’ – we sell around a billion sachets each year,” reveals Haroon.

He highlights that self-care – the proactive steps individuals take to maintain their health – is essential for alleviating pressure on overloaded healthcare systems.

“It’s about prevention. We aspire for people to be healthier, more productive, and less reliant on prescription medications,” he elaborates.

The company is actively collaborating with the government to investigate opportunities for local production of medicines, such as paracetamol, which currently depends heavily on imports.

“This is a product that can be manufactured here. If a product isn’t export-ready, let’s consider import substitution,” states Haroon.

Championing health inclusivity

In addition to manufacturing, Haleon’s stakeholder event on 21 August highlighted the significance of health inclusivity, supported by research from Economist Impact.

The study defines health inclusivity as the elimination of barriers that prevent individuals and communities from achieving good physical and mental health.

According to the report, improving health literacy could potentially save South Africa R39 billion each year. Addressing oral health challenges linked to Type 2 diabetes might lead to savings of R40 billion, while reducing air pollution could avert over 20,000 deaths and unlock R6.4 billion in economic gains.

“These outcomes are significant. Health should be viewed as a fundamental right, and the journey toward inclusivity involves facilitating access to education, prevention, and solutions,” asserts Emile Locke, Haleon’s strategic program lead.

The company has committed to reaching over one billion consumers by 2030 through its inclusivity initiatives.

A global initiative with local relevance

The event in Cape Town is part of Haleon’s ongoing stakeholder engagements, designed to illustrate its role in fostering healthier communities through everyday self-care solutions.

“By 2050, the world’s population is expected to grow by two billion, with 1.4 billion people over the age of 60 by 2030. Our ambition is not just for longer lives but for healthier and more productive lives,” shares Haroon.

For South Africa, the R500 million investment in Haleon’s Epping facility signifies more than just enhanced export capabilities; it also includes job creation, technology transfer, and supplier development, all contributing to economic growth, he notes.

Brought to you by Haleon South Africa.

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