US health care group Abbott Fund is considering building a pharmaceutical plant in Tanzania to manufacture anti-retroviral drugs (ARVs).

In talks with President Jakaya Kikwete last week, the fund's chief Meles White said he will send experts to conduct a feasibility study once the government approves the project.

"President Kikwete supported the idea and directed the minister for health and social welfare to further the talks with the firm," state-run Daily News said.

In addition, White promised to donate anti-retroviral drugs worth one million dollars to support Kikwete's pledge to fight the deadly disease. Tanzania imports most of its medicines, including life-prolonging ARVs.

In 2005, Abbott Fund, an Illinois-based non-profit organisation, launched a 35-million dollar HIV/AIDS testing and treatment facility in the country's main hospital in Dar es Salaam.

Of the 37.6 million peopleliving in Tanzania, between 1.6 and two million are believed to be infected with the virus that causes AIDS, according to official estimates.