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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--At the end of the second quarter of 2017, the global Pharmaceutical & Biotech Industry will have wrapped up construction on nearly $5 billion worth of reported capital and maintenance investments. Spread over 242 individual projects, construction should be complete between April 1 and June 30.
Click here to access the 2017 Pharmaceutical--Biotech Industry North American Outlook.
The projects in play represent an average total investment value (TIV) of $19.5 million. Of course, from an individual investment standpoint, there is a wide spread from top to bottom: from a $1 million regularly scheduled maintenance program, all the way up to a $240 million fractionation plant.
Sources for the second-quarter activity include private industry, commercial developers and universities. The projects include grassroot facilities, major building additions to existing sites and in-plant capital.
Click on the image at right for a map of Pharmaceutical & Biotech project completions in second-quarter 2017.
CSL Behring LLC (Melbourne, Australia) is expected to finish a $240 million plasma protein fractionation plant addition at its Bradley site in Kankakee, Illinois. The 300,000-square-foot plant will be able to produce up to 4 million liters per year of fractionated blood plasma proteins. Those proteins will be sent to the company's plant in Bern, Switzerland, where they will be used in the production of immunoglobulins, which are used to treat immune deficiencies.
Construction began in early 2015, with Fluor Constructors (Greenville, South Carolina) and Alexander Construction (Bourbonnais, Illinois) on board. Construction of a new QA laboratory was also part of the project. For more information, see Industrial Info's project report.
Takeda Pharma Vertrieb GmbH & Company (Berlin, Germany) invested $112 million to expand a solid dose pharma plant (7 billion units per year capacity) in Oranienburg, Germany. The project added one solid-dose production module, a multi-purpose building and a new laboratory building. The project team included architect BHB + Partner (Berlin, Germany) and engineering, procurement and construction (EPC) company Carpus + Partner AG (Aachen, Germany). For more information, see Industrial Info's project report.
Elanco Animal Health (Greenfield, Indiana) invested $150 million to expand and upfit its bovine hormone injectables plant in August, Georgia. The project was done in a series of phases, including the addition of a microlab isolator suite; upfitting the existing 35,000-square-foot plant; and adding another 40,000 square feet of production and research space. Project team members included CRB Consulting Engineering (Cary, North Carolina) and McCarthy Building Companies (Atlanta, Georgia). For more information, see Industrial Info's project report.
Historical Data Offers Bigger Picture on Capital Spending
As is the case when dealing with any kind of construction, further compounded by the nature of these projects, completion dates may go beyond what is reported. If the project involves manufacturing, the completion date may be over a year before the occupancy/operational date, due to commissioning and validation requirements.
As projects age and make it through various stages of planning, engineering and construction, the completion data become increasingly more valuable. All of the various pieces involved come together and offer a more complete picture, full of possibilities.
This is a vastly different, yet no less important approach than that of analyzing early-stage projects. Historical analysis of completed projects can and does offer insight into future possibilities.
Much can be gained from looking at the old data. Clues and patterns emerge, often from what initially appears to be disparate information. Did a company annually spend several million dollars in expansions or equipment upgrades at each of its plants on a regular basis, only to stop the investment at one of those plants over the past couple of years, while continuing at the others?
Why? Perhaps the plant's division is being phased out or sold. It could be the site is landlocked, or production will be moved to a completely new, larger facility. Alternatively, a decision could have been made that it would be more efficient to centralize production and do a major expansion at one of the other sites.
It just illustrates how something as seemingly insignificant as a drop-off in a few million of capital expenditures could signal opportunities yet to evolve. That "loss" could translate into a major capital construction investment.
Looking at the past offers other opportunities. For expansions, has a company consistently used the same project team? Do they have a "go to" architect, engineering firm and/or contractor? Some are tapped no matter the location of the project. It could be that every project hosted a completely new team or a variation thereof. Maybe the architect is always the same, but the others change each time.
These are just a very few examples of how historical data can provide easily overlooked advantages, proving the truth in another old gem: "Knowledge is power."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click here to access the 2017 Pharmaceutical--Biotech Industry North American Outlook.
The projects in play represent an average total investment value (TIV) of $19.5 million. Of course, from an individual investment standpoint, there is a wide spread from top to bottom: from a $1 million regularly scheduled maintenance program, all the way up to a $240 million fractionation plant.
Sources for the second-quarter activity include private industry, commercial developers and universities. The projects include grassroot facilities, major building additions to existing sites and in-plant capital.
CSL Behring LLC (Melbourne, Australia) is expected to finish a $240 million plasma protein fractionation plant addition at its Bradley site in Kankakee, Illinois. The 300,000-square-foot plant will be able to produce up to 4 million liters per year of fractionated blood plasma proteins. Those proteins will be sent to the company's plant in Bern, Switzerland, where they will be used in the production of immunoglobulins, which are used to treat immune deficiencies.
Construction began in early 2015, with Fluor Constructors (Greenville, South Carolina) and Alexander Construction (Bourbonnais, Illinois) on board. Construction of a new QA laboratory was also part of the project. For more information, see Industrial Info's project report.
Takeda Pharma Vertrieb GmbH & Company (Berlin, Germany) invested $112 million to expand a solid dose pharma plant (7 billion units per year capacity) in Oranienburg, Germany. The project added one solid-dose production module, a multi-purpose building and a new laboratory building. The project team included architect BHB + Partner (Berlin, Germany) and engineering, procurement and construction (EPC) company Carpus + Partner AG (Aachen, Germany). For more information, see Industrial Info's project report.
Elanco Animal Health (Greenfield, Indiana) invested $150 million to expand and upfit its bovine hormone injectables plant in August, Georgia. The project was done in a series of phases, including the addition of a microlab isolator suite; upfitting the existing 35,000-square-foot plant; and adding another 40,000 square feet of production and research space. Project team members included CRB Consulting Engineering (Cary, North Carolina) and McCarthy Building Companies (Atlanta, Georgia). For more information, see Industrial Info's project report.
Historical Data Offers Bigger Picture on Capital Spending
As is the case when dealing with any kind of construction, further compounded by the nature of these projects, completion dates may go beyond what is reported. If the project involves manufacturing, the completion date may be over a year before the occupancy/operational date, due to commissioning and validation requirements.
As projects age and make it through various stages of planning, engineering and construction, the completion data become increasingly more valuable. All of the various pieces involved come together and offer a more complete picture, full of possibilities.
This is a vastly different, yet no less important approach than that of analyzing early-stage projects. Historical analysis of completed projects can and does offer insight into future possibilities.
Much can be gained from looking at the old data. Clues and patterns emerge, often from what initially appears to be disparate information. Did a company annually spend several million dollars in expansions or equipment upgrades at each of its plants on a regular basis, only to stop the investment at one of those plants over the past couple of years, while continuing at the others?
Why? Perhaps the plant's division is being phased out or sold. It could be the site is landlocked, or production will be moved to a completely new, larger facility. Alternatively, a decision could have been made that it would be more efficient to centralize production and do a major expansion at one of the other sites.
It just illustrates how something as seemingly insignificant as a drop-off in a few million of capital expenditures could signal opportunities yet to evolve. That "loss" could translate into a major capital construction investment.
Looking at the past offers other opportunities. For expansions, has a company consistently used the same project team? Do they have a "go to" architect, engineering firm and/or contractor? Some are tapped no matter the location of the project. It could be that every project hosted a completely new team or a variation thereof. Maybe the architect is always the same, but the others change each time.
These are just a very few examples of how historical data can provide easily overlooked advantages, proving the truth in another old gem: "Knowledge is power."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
