Business
AorTech to Open US Facility
AorTech to Open US Facility.
About this update from Rua Life Sciences Plc
[{"type":"text","content":"\n \nRNS Number : 5449I Aortech International PLC 16 June 2011 \n \n\nFor Immediate Release 16 June 2011\n \n \nAorTech to Open US Manufacturing and Technology Centre\n \n \nAorTech International plc (\"AorTech\" or \"the Company\") (AIM: AOR) is pleased to announce the relocation of its primary manufacturing operations from Melbourne, Australia to the Minneapolis/St. Paul area (MSP) in the USA. The total cost of this strategically important move is expected to be $1.8 million, which will be fully funded from payments that the Company will receive following the restructuring of certain customer licences (amounting to $4.2 million) and the sale of certain highly depreciated capital assets (amounting to $300,000). The surplus funds will enable production to be commenced in the US facility, provide cash for working capital purposes, and provide a solid base upon which to grow the component business, with the emphasis on accelerating a number of pacemaker header and other reaction injection moulding projects. \n \nAorTech anticipates the relocation will be beneficial in a number of ways. Firstly, it will allow for the growth of AorTech's polymer and component businesses. Secondly, the MSP area is the hub for the largest concentration of medical technology companies in the world and includes many of AorTech's current and potential customers. Finally, the relocation will remove certain exchange rate risk to the Company as the expenses associated with the Company's primary cost centre (its factory) and its revenues will be in the same currency. \n \nIncluded in this move are AorTech's medical polymer and component divisions, along with the customer application engineering, R&D, and quality assurance labs to support these two manufacturing divisions. The customer reaction to this initiative has been very positive and production is expected to commence in the Rogers facility, near MSP, in Q3 2011. \n \nAccess to a larger, highly qualified and skil...