22 January 2016
Ellex Expands Production Facilities to Meet Anticipated Demand
Ellex Medical Lasers Limited (ASX:ELX), a global leader in medical devices for diagnosis and treatment of eye disease, today announced that it has entered into a conditional contract to acquire a building in the northern suburbs of Adelaide, South Australia which will provide additional production capacity in order to meet increasing demand for its ophthalmic laser and ultrasound products.
“Demand for our products is strong and we expect it to remain so for the foreseeable future. We moved into our current premises, in the City of Adelaide, 15 years ago and have now outgrown that site. This new building provides us with 50% more floor space and there is room for further expansion on the site, if required, by extending the building”, commented Mr Tom Spurling, CEO.
The building has 4,500 square metres of floor space and is situated on 2.18 hectares of land in Mawson Lakes, about 15km’s north of the Adelaide CBD. The conditions precedent for the contract have not yet been satisfied. Settlement is currently scheduled for March 2016. Further commercial details will be provided at settlement. The acquisition will be funded by bank debt.
“The new manufacturing facility will provide us with a number of benefits including; more space to better lay out production and improve efficiency, improved facilities for staff and enough space to fulfil our growth plans at a cost comparable to our current occupancy costs”, added Mr Spurling.
Ellex designs, develops, manufactures and sells innovative product that help eye surgeons around the world to effectively and efficiently treat eye disease. Ellex is a world leader in this field. Headquartered in Adelaide, Australia, Ellex has ophthalmic lasers and devices that treat glaucoma, retinal disease primarily caused by diabetes, secondary cataract and vitreous opacities, as well as age-related macular degeneration. Manufacturing is carried out in Adelaide, Australia and Fremont, California. Sales and service directly to eye surgeons is conducted via subsidiary offices in Minneapolis, Lyon, Berlin and Tokyo. A network of more than 50 distribution partners around the world services other markets.
For additional information about Ellex and its products, please visit www.ellex.com
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