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Mercator Medical is planning to expand the medical gloves factory in Thailand

Mercator Medical, one of the European leaders in the single-use medical materials industry, has announced that it is pl…

Mercator Medical, one of the European leaders in the single-use medical materials industry, has announced that it is planning to expand the medical glove factory in Thailand.

At the area of the property owned by the Thai subsidiary, the Issuer is planning to open a total of 7 new production lines for gloves, including infrastructure, with an aggregate capacity of approximately 140 million gloves per month. The estimated cost of the investment is expected to be approx. PLN 100 million. The Issuer is expecting that the investment will be financed from the Issuer’s Group’s own resources, including the funds acquired by a possible increase of the Issuer’s share capital, and from external sources, including bank loans. The company is planning to start the construction works not later than in the first half of 2016.

Our forecasts for the development of the medical gloves market convinced us to seriously consider a substantial extension of the factory, which would let us more than double our potential productivity (from 100 million gloves manufactured currently per month to approx. 240 million gloves after completion of the planned investment) and, as a consequence, our share in the global market of medical gloves. We want to make the final decision on the expansion in the first half of next year, after obtaining the necessary administrative permits and tax exemptions and after providing funds for the project on appropriate terms. The investment would be completed and the production would start after approximately 18 months from its commencement - informs Wiesław Żyznowski, PhD, President of Mercator Medical S.A.

Mercator Medical has already successfully completed the first extension of the factory. In March 2015, at our Mercator Medical factory in Thailand, the fourth and thus the last of the previously planned production lines for latex gloves was started. The launch of all new production lines made it possible to increase the production capacity to approx. 100 million gloves per month.

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