Vetter securing customer commitments ahead of groundbreaking at US site

By Melissa Fassbender

- Last updated on GMT

(Image: Getty/scyther5)
(Image: Getty/scyther5)

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Vetter is talking with customers to create a “stable financial plan” that will justify the manufacturer’s previously announced $320m investment for a new facility, which is not expected to break ground before 2022.

The contract development and manufacturing organization (CDMO) initially announced its plans to build the new manufacturing facility in July 2016​, at which time no detailed time frame had been outlined regarding groundbreaking or completion.

This week, reports ​have circulated that Vetter is now delaying construction of the facility, which would be the first of its kind to be developed outside its headquarters in Germany.

When asked to confirm reports of a delay, Markus Kirchner, a corporate spokesperson, told us the statement “does not seem to be accurate​,” as no fixed schedule existed for the “possible US facility in Des Plaines​.”

To be clear, some of our customers have expressed an interest in the possibility of having Vetter offer its large-scale manufacturing capabilities in the US in addition to Europe​,” he said.

However, Kirchner noted that because the site’s construction requires a significant initial investment, the company must first have in place a “stable financial plan that justifies this investment​” in order to “seriously undertake such a large project​.”

As a service provider to the pharmaceutical industry, it is important that we have commitments from our customers on the usage of any newly created capability to support this plan​,” he added.

Kirchner said for these reasons the company is in active and ongoing discussions with its customer base.

Establishing our customers’ needs as realistically as possible, in advance, is critical to our progress since their business parameters and long-term strategy can adjust and change,​” he explained, adding that “it is not possible to commit to a project of this magnitude, without having fixed customer commitments​.”

As such, we do not expect a possible groundbreaking for the Des Plaines site any earlier than the year 2022​,” Kirchner said.

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