Read the Registration Document - Guerbet

4) Manufacturing activity, investments and R&Da) Manufacturing activity, logistics and investmentsGuerbet manages the complete production and manufacturing cycle through its four production sites and itsnetwork of subcontractors.Three of Guerbet's four production sites- are located in France:o A fine chemical facility located in Marans, Northeast of La Rochelle (CharenteMaritime), specialised in the synthesis and production of active ingredients andchemical intermediates. In addition, Simafex has developed toll manufacturing servicesfor pharmaceutical companies and acquired specific expertise in process extrapolation,o The Lanester site (Morbihan) manufacturers active ingredients for the X-ray line,o The Aulnay-sous-Bois site (Seine-Saint-Denis) manufacturers finishedpharmaceutical products,- Plus one pharmaceutical production plant in Brazil based in Rio de Janeiro.Guerbet also has three distribution centres located in Europe, Asia and South America. Our logisticsexpertise contributes to optimising costs and guarantees that delivery deadlines are met while maintainingthe quality standards of our products. The Gonesse platform located near the Aulnay-sous-Bois sitehandles our product ranges destined for Europe, the US, Africa and the Middle East. Our Hong Kong centremanages distribution for the entire Asia region where proximity to local markets is essential. Finally, ourBrazilian subsidiary has a logistics department and supplies all of South America. Measures have beentaken to complete our logistics capabilities in the US to prepare for Dotarem's launch.For several years, Guerbet has been preparing for the future by investing in its industrial base:- Chemical manufacturing for intermediates and active ingredients;- Production of finished pharmaceutical products in the form of sterile injectable solutions (vials andbags).These investments are part of an ambitious programme for modernising the industrial sites to increaseproduction capacity and competitiveness by securing supplies, improving productivity and the productiontime cycle and reducing production costs. Furthermore, significant efforts have been taken to improve theenvironmental performance of manufacturing sites. Commitment to quality, respecting internationalmanufacturing standards reinforced safety and respecting the environment are integral parts of the Group'sindustrial strategy.At Marans, after the production line for the active ingredient of Lipiodol® was fully renovated, productioncapacity for chemicals in the MRI sector were increased significantly in order to meet growing demand forDotarem®, strengthened by the preparation for its launch in the US. Investments at the Marans site alsoconcerned completion of the first phases for improving environmental performance and strengthening fireprotection and prevention systems.At Lanester, capacity investments were completed for Xenetix® though important investments have beenundertaken to improve the environmental footprint involving notably the recycling of iodine, the treatment ofeffluents and the management and prevention of industrial risks.At Aulnay-sous-Bois, the Group has invested in a new filling unit for the manufacture of injectablesolutions in the form of vials and bags that is in the process of being completed. Buildings and theinstallation of utilities have been completed and the first validations of the vial and bag filling lines initiallyscheduled for end of 2012 have been moved ahead to 2013. This investment responds to demand forincreasing production capacity, improving productivity and meeting international standards of quality for themanufacture of injectable pharmaceutical products.At the Rio de Janeiro plant, investments for the renewal of the filling line are in progress and will becommissioned at the end of 2013. They involve mainly the installation of a new cleaning machine and anew bag filling line.Overall, between 2005 and 2012, capital expenditures for Guerbet's French manufacturing sites havetotalled €186 million.14