Serological implements plant rationalization

Atlanta, USA-based Serologicals Corp has announced two actions related to its ongoing plant consolidation and rationalization initiative. As part of this process, the company continues to focus on reducing ongoing operating costs while improving the productivity and efficiency of its facilities, supply chain management activities as well as overall customer service.

Accordingly, the company has decided to close its facility in Toronto, Ontario, Canada and move all manufacturing of its cell culture products to Kankakee, Illinois. This action is currently projected to occur during the first half of 2006. The Toronto facility will be written down to net realizable value as part of the closing and this will be included in the firm's fourth quarter financial results for 2005. The facility will be prepared for sale.

Serologicals says it continues to see increased demand for its patented cell culture product, EX-CYTE. In addition, during the past six months, it has successfully expanded its production capacity at its Kankakee facility over 50% and now can meet both current and anticipated demand for EX-CYTE with this location. Further process improvements have also been identified that will expand capacity to over 100,000 liters per year. As a result of these developments, the Company has decided that it will not open the Lawrence facility as originally anticipated and will also be written down to net realizable value as part of the group's fourth quarter 2005 financial results and the plant will be prepared for sale.