ANAHEIM, CALIF. (Feb. 15, 4:10 p.m. ET) — Nypro Inc. has temporarily put on hold two previously announced expansions for the finished product assembly and packaging business of its medical sector.
Temporarily shelved are a 90,000 square foot expansion of its plant in Mebane, N.C., and the creation of a development and design center for that business at its headquarters in Clinton, Mass. But Nypro has added to the drawing boards a plan for a small clean room in Clinton to support that sector.
“The plans [for the expansion in Mebane] have been sketched out, but the money has not yet been allocated for that,” said Jason Durkin, global director at Nypro Healthcare for finished product assembly and packaging — the business that was previously known in Nypro as pharmaceutical packaging.
“Likewise, the plans for a development and design center in Clinton are in place, but are not being executed at this time. Both projects will be driven by need,” Durkin said at the Medical Design and Manufacturing West show, held Feb.14-16 in Anaheim.
The Mebane expansion — announced in August — had been scheduled for completion this June, and the design center in Clinton had been scheduled to open this month.
However, Durkin said that a 75,000 square foot expansion at the company's Asheville, N.C., plant — which makes injectable insulin pens — has been completed. In addition, his group had submitted a capital expenditure request to build a 20,000 square facility in Clinton to support the finished product assembly and packaging business.
He said the request had not yet been approved, but that his expectation is that the clinical portion of the proposed expansion could be completed by the middle of this year, and the production segment could be up and running by the first quarter of next year.
He said the expansion includes a 10,000 square foot Class 8 clean room, and 5,000 square feet each for inventory and office space.
“The space is needed to support business we have already won,” Durkin said. ”We have had many successful wins in that space in the past 18 months.” He said the clean room would also have a cold chain management area for customers whose drugs require refrigeration.
He said a number of people in Clinton are working on development and design, but the vast majority of that effort is concentrated in Ireland, where Nypro also has a manufacturing plant that it is considering expanding.
“We have the drawings in place for an additional expansion of that site,” Durkin said.
Overall, Durkin said the company's medical business is growing.
“We are seeing decent revenue growth,” Durkin said. “We are on par or slightly ahead of the market.”
Currently, the medical business accounts for roughly one-third of Nypro's annual sales, which Durkin said are “still hovering around $1.1 billion to $1.2 billion. We want to grow the medical sector to be larger. It takes more time for projects to deliver revenue, but the business is more stable and you end up with 5-10 years of production from a project.”