Custom Pharmaceuticals, the Hove-based drugs manufacturer, is creating 40 jobs at a new £1.25 million plant.

The company is converting an old warehouse in Westergate Road, Moulsecoomb, Brighton, into a packaging and laboratory site.

Bosses hope the facility will be open by early next year.

Custom will continue to manufacture prescription and over-the-counter (OTC) drugs from its headquarters in Conway Street, Hove.

Last year the company made 1.2 billion tablets and 200 million capsules. It hopes to increase output by 50 per cent during the next two years.

Custom, which employs 130 people, secured a £200,000 investment grant towards the plant from the South-East England Development Agency.

The company was advised to apply for the grant by Brighton and Hove City Council's economic development team. The council then helped Custom prepare a business plan for Department of Trade and Industry approval.

Chairman Nigel Richardson said the grant would be paid retrospectively, depending on the company creating 40 permanent jobs during the next two years.

Custom manufactures branded and generic medicines and health-care products.

The company's key prescription products include painkilling drug co-codamol. Its biggest OTC products include Propain and Yeast Vite.

Founded by Mr Richardson's father in 1979, the business was acquired in 1991 by outside investors.

A management buyout took place in 2002 and the business went on to achieve its best year.

Due to the world market, turnover went into slight reverse in 2003, falling from £9 million in 2002 to £8.6 million.

But sales are forecast to grow by 20 per cent this year and a further 25 per cent in 2005 to £13 million.

Mr Richardson said: "The general trend in turnover has been upward and we have simply outgrown our site in Conway Street.

"We are having to spread the work across two sites now and this will accommodate further expected growth next year."

The business has already begun to employ new people as a result, with employee numbers up from 90 two years ago to the current 130.

That will rise again in 2005 to 150.

Wednesday June 16, 2004