Probiotec consolidates manufacturing to new site

Contract pharmaceutical manufacturer and packaging specialist Probiotec is to consolidate its New South Wales pharmaceutical manufacturing and FMCG packaging operations to a new 30,000 sqm facility in Kemps Creek, NSW.

The company, which has completed five acquisitions in NSW since 2018, said the new plant would increase capacity, capabilities and efficiencies and result in cost savings of up to $5 million a year.

Probiotec has six manufacturing sites nationally with its’ major operation is at Laverton North in Melbourne.

The NSW project is capital light, with a developer agreeing to take responsibility for the build and majority of the fitout of the new premises.

CEO Wes Stringer said: “The new site will be state of the art and provide an incredible platform for Probiotec to attract new clients, whilst allowing us to significantly expand our capabilities with existing cvustomers to meet future demand.”

In a statement he said the site consolidation was expected to:

  • Significantly reduce overhead expenses
  • Remove duplication of products
  • Simplify logistics to deliver shorter turnaround time for customers
  • Improve coordination and efficiency of consolidated IT systems
  • And increase capacity to meet increasing customer demands and future acquisitions.

According to the statement, Probiotec will outlay $7 to $10 million to consolidate the site and expects a payback period of approximately two years once the facility is operational.

Picture: Probiotec

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