CSL plans for expansion
CSL has announced a $450 million investment to expand its global production capacity.
CSL collects and transforms blood plasma into sophisticated products that treat rare and serious diseases. The products are created in a globally integrated network, with sites in the USA, Australia, Switzerland and Germany. As a result of the growing global demand for lifesaving therapies, CSL is expanding its global production capacity by investing $240 million in its Kankakee site (Illinois, USA) and $210 million in its Broadmeadows site (Melbourne).
The key takeaway from this announcement is the scale of expansion in the Kankakee site. CSL has recently received approval by the U.S. Food & Drug Administration (the FDA) to commence operations in 140,000 square feet of new floor space. The additional $240 million investment, which is anticipated to be completed by 2017, will be more than double this area.
At Montgomery Investment Management, we seek companies that can invest large amounts of capital at high rates of return. CSL is one of the most efficient collectors of plasma in the world, and its ongoing investment in value-added production facilities should generate robust earnings growth over the longer-term.
CSL is a major holding in both The Montgomery Fund and The Montgomery Private Fund.
Click here to read the full announcement.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
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