SCHOTT invests in Mainz

Date: 15 December 2008
The SCHOTT technology group will establish a production facility for pharmaceutical glass tubing for the first time at the Mainz plant site and therewith will open up a new chapter in the almost 60 year history of the location.

Construction of two glass melting tanks will create at least 135 new jobs both in production as well as in the logistics and technical services support functions. The investment volume amounts to a significant, two-digit million sum. “Following establishment of the Glass Ceramic Competence Center, erection of the glass tubing production represents a further milestone in the more recent development of the Mainz plant site,” explained Professor Udo Ungeheuer, Chairman of the Board of Management of SCHOTT AG. The existing infrastructure was one of the primary reasons for choosing Mainz as the production site. The batch house for combining raw materials, the production hall as well as the utility supply lines to operate the melting tanks are already in place.

The first glass melting tank is expected to start operation as early as September 2009. Then, up to 10,000 tons of special glass tubing of the FIOLAX clear brand will be produced. At the end of the manufacturing process, the tubes that have been cut to a length of 1.5 meters are bundled into “Densopacks” and shipped for further processing. The glass tubes are used to produce packaging for the pharmaceutical industry such as for syringes, vials and bottles. These are manufactured at other SCHOTT locations and by customers.

Construction of a second glass melting tank to increase capacity is already planned. The exact timing for implementation of this project depends upon future business developments, but it should be realized, at the latest, in the year 2010. Ungeheuer considers the investment to be an important signal for the future: “With this measure, we are further strengthening our excellent international position in the pharmaceutical market. Pharmaceutical tubing and pharmaceutical packaging are growth businesses from which the Mainz plant site can now directly profit.” Up to now, production of pharmaceutical tubing in Germany took place exclusively at the Tubing Competence Center in Mitterteich in the Upper Palatinate. Additional production sites are located in Brazil, India and Spain.

The decision to establish an additional production site for pharmaceutical glass tubing instead of increasing capacity at existing sites was made also considering the requirements of pharmaceutical manufacturers. To ensure dependable supply, these companies consider it to be very important that neither production of pharmaceutical tubing nor of pharmaceutical packaging be concentrated at a single plant site. Multiple production sites must exist for each type of production.

The recent investments made in Mainz are a consistent continuation of the sustainable company strategy to strengthen the German SCHOTT plant sites. “The Tubing Business Segment proves that Germany can hold its own against international competition, also in the production of classic products,” emphasized Professor Ungeheuer.

SCHOTT is an international technology group that sees its core purpose as the lasting improvement of living and working conditions. To this end, the company has been developing special materials, components and systems for nearly 125 years. The main areas of focus are the household appliances industry, pharmaceuticals, solar energy, electronics, optics and the automotive industry. The SCHOTT Group is present in close proximity to its customers with production and sales companies in all its major markets. The Group’s approximately 16,700 employees generated worldwide sales of approximately 2.1 billion euros for its 2006/2007 fiscal year. The company’s technological and economic expertise is closely linked with its social and ecological responsibility. The parent company of the SCHOTT Group is SCHOTT AG, whose sole shareholder is the Carl-Zeiss-Stiftung (Foundation).

600450 SCHOTT invests in Mainz

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