Grifols Announces Capital Investment Plan of Euro 400 Million Over the Next Five Years
Within the scope of the approved investment plan, euro 230 million will bedesignated for ensuring growth in production and sales during the 2008-2012period, and the remaining euro 170 million will support growth from 2013onward. This will allow the company to prepare for sustained growth over thenext 8 to 10 years.
In order to ensure growth through the year 2012, Grifols will invest euro230 million in its production facilities in Spain and the USA.
Investments to be made in the Spanish facilities include euro 130 millionfor the construction of a new fibrin glue (biological adhesive) productionfacility and expansion of the albumin and coagulation factor VIII purificationareas. Albumin and coagulaton factor VIII are two of the principal plasmaproteins that Grifols markets.
In the USA, euro 100 million will be invested in the Los Angelesfacilities for the completion of the purification and sterile filling areasfor coagulation factors (such as Factor VIII), the opening of new plasmacollection centers and the construction of a new analytical laboratory inAustin, Texas. This laboratory, which will be located near Grifols existingUS-based laboratory, will allow the company to handle the growing amount ofplasma samples to be analyzed. Additionally, the new laboratory will servethe strategic purpose of providing Grifols an alternate testing location.
Forty-two percent (42%) of the 2008-2012 investment plan will be set asidefor ensuring growth after the year 2013.
These investments, designated for ensuring Grifols' growth from the year2013 onward, will also be allocated to the Spanish and US facilities. Sixtymillion Euros will be invested in facilities located in Barcelona, Spainmainly for the purpose of doubling current plasma fractionation capacity from2 million liters in 2007 to 4 million liters in 2013. In the USA, the companywill invest euro 110 million at its current location in Los Angeles,California to build a new Flebogamma DIF(R) (IVIG) production facility. Thenew facility will be designed to match the existing Flebogamma DIF(R) facilityin Barcelona, Spain. Grifols will also continue to expand the number of plasmacollection centers it owns and operates in the USA.
The investment plan takes into account the fact that biological productionfacilities require an average of five years from the time the investment isapproved to the time regulatory authorizations (FDA, EMEA, etc.) are likely tobe obtained for the marketing of products.
All of the engineering projects related to the investments to be carriedout at the various Grifols' facilities have already been designed and will beexecuted by Grifols Engineering S.A., a wholly owned subsidiary of Grifolsthat designs, fabricates and installs custom production equipment for thebiologics industry.
Grifols' euro 400 million five-year investment plan is expected to befunded with both internal and external resources.
Grifols is a Spanish holding company specializing in the pharmaceutical-hospital industry, with a presence in more than 90 countries. Since May of2006 its shares have been traded on the Spanish Stock Exchange (MercadoContinuo Espanol) and it is included in the Spanish index of mediumcapitalization firms (IBEX MEDIUM CAP). It is currently the leading Europeancompany in the plasma therapies industry and the fourth-largest producer inthe world. In the coming years, Grifols will leverage its market leadership asa vertically integrated company through past
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