Posted on Dec 12, 2007

LONDON (Dow Jones)--Vindon Healthcare said Wednesday that they have signed contracts with Wilson Bowden for the construction of a manufacturing and storage facility on the 420 acre Kingsway business park, in Rochdale, Greater Manchester, for a cost of GBP3.3 million. It also announced a new debt facility of GBP1.4 million. The new facility (29,480 sq ft), which will be ready for use by the Autumn of 2008, will provide Vindon with a significant new platform for future growth, the company said. It will enable it to not only expand its manufacturing capacity by two fold but also to provide a best-in-class storage and disaster recovery facility for the U.K. and European Pharmaceutical and Biotechnology Industry, it said. The new storage capacity will be sufficient to store nearly five times existing utilised capacity. Total costs for the project, including fit-out, are estimated to be GBP3.3 million. This will be funded by a new debt facility of GBP1.4 million together with the proceeds of a placing which took place on May 9 this year which raised a net GBP1.9 million after costs. There will be further funds available to the Group once the sale of the existing site in Diggle takes place, the company said.