Synergy Health plc Invests 18 Million GBP (US$30 Million) To Expand Global Applied Sterilisation Technology Capacity

Synergy Health, a leading provider of outsourced sterilisation and laboratory services to the healthcare industry, is investing £18 million (US$30M) to expand capacity in its Applied Sterilisation Technology (AST) division. The expansion plans are expected to increase revenues by approximately £33 million (US$55 million) over the coming 3 years, in line with previous guidance.

Europe: Gamma capacity in Europe is being increased across three facilities to accommodate new contract wins. In Ede (the Netherlands) the facility will be expanded by approximately 50%, in Radeberg (Germany) capacity will be increased by 30% and a new gamma pallet facility will be constructed in Bradford (UK) more than doubling capacity. In addition Synergy is extending its network of laboratories to Radeberg to provide microbiological, food and allergen testing services.

Asia: The Ethylene Oxide facility in Kuala Ketil (Malaysia) will receive a fourth 12 pallet chamber expanding capacity by 25%.

The Americas: Synergy will start construction on its sixth e-beam facility in the San Francisco North Bay area having secured contracts to underpin the new operation. This facility, targeted for completion April 2015, will augment two existing e-beams located in San Diego and provide customers with additional business continuity assurance. In addition, construction has started on a new laboratory in the existing San Diego facility. The previously announced additional e-beam in Saxonburg PA remains on schedule to commence operations March 2015.

"We are pleased to support the increasing demand from our multinational medical device customers for our sterilisation services. Following the construction of the e-beam in San Francisco, Synergy will have the largest global network of sterilisation facilities serving its customers across 15 countries in Europe, Asia, South Africa and the Americas," said Andrew McLean, CEO Applied Sterilization Technologies & Laboratories.