Sigma-Aldrich Expansion in Republic of China to Support SAFC Growth

Wednesday, September 12, 2007 General News
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ST. LOUIS, Sept. 12 Sigma-Aldrich (Nasdaq: SIAL)has announced its intent to invest in a site at the Wuxi-New District Park(WND) located northwest of Shanghai, China, for its new Asia-Pacificmanufacturing hub. Sigma-Aldrich has executed a memorandum of understandingwith the WND authorities.

The site is to be developed in three phases. Sigma-Aldrich expects toinitially invest $25 million to acquire land rights and construct itsfirst-phase that includes a large-scale, non cGMP, multi-purpose organicmanufacturing facility dedicated to supporting its SAFC(R) fine chemicalsbusiness unit. Sigma-Aldrich plans to commence construction of the new plantby year-end 2007. When fully developed the site is expected to produce rawmaterials, key intermediates and final products in support of SAFC's Pharma,Hitech and Supply Solutions businesses through a manufacturing plant, andanalytical, packaging and warehousing facilities.

Future development phases at the site will also support Sigma-Aldrich'sResearch Essentials and Research Specialties business units and include theextension of analytical, packaging and warehousing facilities for itsresearch-based business.

Commenting on the investment, Sigma-Aldrich CEO Jai Nagarkatti, stated,"As part of our 2005 strategic plan, we announced our intent to increaseassets in CAPLA (Canada, Asia-Pacific, Latin America) regions to support theobjective of achieving 25% of total revenue in CAPLA markets by 2010. Thisinvestment represents a significant step toward achieving that goal, as itwill help us accelerate sales growth in the Asia Pacific region while allowingus to better serve both our local and global customer base."

SAFC President Frank Wicks added, "The addition of our facility in Chinawill add essential capacity to service growing demand for SAFC products. Inparticular, the combination of products manufactured in China and at ourEuropean and U.S. based sites is expected to provide us an unparalleledcompetitive offering to customers across all businesses."

The development of the new China campus marks a continuation of SAFC's"build and acquire" strategy, put in place to meet the increased demands forits medicinal chemistry and cGMP manufacturing services. The site complementsSigma-Aldrich's state-of-the- art Bangalore, India facility, which commencedproduction in October, 2006. Representing an investment of $12 million, the139,000 sq. ft. India site supports customers with the manufacture ofsmall-scale, key intermediates for medicinal chemistry.

About SAFC: SAFC is the custom manufacturing and services group withinSigma-Aldrich that focuses on high-purity inorganics for high technologyapplications, cell culture products and services for biopharmaceuticalmanufacturing, biochemical production and the manufacturing of complex,multi-step organic synthesis of APIs and key intermediates. SAFC hasmanufacturing facilities around the world dedicated to providing manufacturingservices for companies requiring a reliable partner to produce their custommanufactured materials. SAFC has four focus areas -- SAFC Pharma, SAFC SupplySolutions, SAFC Biosciences, and SAFC Hitech -- and had annual sales of nearly$500 million in 2006. SAFC is one of the world's 10 largest fine chemicalbusinesses. For more information about SAFC, visit

About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and HighTechnology company. Our biochemical and organic chemical products and kits areused in scientific and genomic research, biotechnology, pharmaceuticaldevelopment, the diagnosis of disease and as key components in pharmaceuticaland other high technology manufacturing. We have customers in life sciencecompanies, university and government institutions, hospitals and in industry.Over one million scientists and technologists use our products. Sigma-Aldrichoperates in 36 countries and

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