Datwyler begins the new year in robust shape.

Ad hoc announcement pursuant to Art. 53 LR SIX Swiss Exchange |
- New multi-year contract with Nespresso holds potential for growth.
- Major expansion of Health Care production capacity in India.
- Modernisation of ERP software to accelerate digitalisation of business processes.

Datwyler is beginning the year in robust shape. In the Sealing Solutions division, the Group has extended its successful partnership with Nespresso, with the new multi-year contract providing further potential for growth. Datwyler and Nespresso have continually intensified their cooperation since 2006. Today, the world leader in high-quality portioned coffee is the Datwyler Group’s largest single customer. The details of the close partnership with Nespresso are subject to a non-disclosure agreement.

Expanding the existing Health Care plant in India

To accelerate organic growth, Datwyler is continuously expanding and updating its existing sites, investing CHF 70 million in expanding the existing Health Care plant in India belonging to the Sealing Solutions division over the next two years, for example. This will expand production capacity there by around 50% from 2020 and provide additional buildings reserves – a necessary step if foreseeable capacity bottlenecks are to be prevented from 2020 onwards. Together with the new plant at its site in Delaware, USA, being brought into operation in late 2018, Datwyler is well positioned to benefit from the rapidly growing demand for high-quality components for prefilled syringes and other modern drug delivery systems.

Modernising ERP software

To accelerate the digital transformation, Datwyler is updating and expanding its ERP software package, with the Group investing some CHF 50 million over the next years. With these measures, Datwyler is increasing the efficiency of its business processes, improving data quality, increasing IT security and laying strong yet flexible foundations for future digital applications. This will also allow future acquisitions to be integrated more quickly and easily.