ACG advances European growth strategy with major expansion in Croatia

ACG, a provider of integrated oral drug delivery solutions, is preparing to strengthen its presence in Europe with significant improvements to its operations in Croatia. The expansion will involve increasing production capacity at ACG’s capsule plant in Croatia, as well as building new warehousing and slitting facilities under the ACG Packaging Materials division. These upgrades are designed to strengthen ACG’s overall capabilities in the region, allowing the company to better meet the growing demand for its products.

This strategic move significantly strengthens ACG’s presence in Europe, improving its ability to meet growing customer demand while optimizing the supply chain across the region. Since acquiring the Lukaps capsule shell manufacturing plant in Croatia in 2007, ACG has invested more than €50 million in infrastructure, technology and processes to bring the plant up to world-class standards. The latest phase of this expansion, expected to be completed by the end of 2024, has already increased production capacity by more than 80% in the past year alone. These improvements allow ACG to better serve its customers and adapt to changing market demands.

Selwyn Noronha, CEO of ACG Capsules, highlighted: "The expansion of our Croatian facility marks a key moment in our strategic growth in Europe. By increasing our production and logistics capabilities, we will not only be able to reduce delivery times for our customers, but also contribute to the local economy by creating new jobs. The plant is designed to meet the highest global manufacturing standards and we are committed to replicating our sustainability initiatives here. Our goal is to ensure that our operations are not only good for the environment, but also for the communities we serve, aligning our growth with responsible and sustainable practices."

"The opening of our new warehouse in Croatia marks a major step in our efforts to increase operational flexibility and enhance our ability to serve our European customers," said SR Shivshankar, CEO of ACG Packaging Materials. "By establishing this facility, we are poised to reduce lead times and increase flexibility, which will allow us to respond more quickly and efficiently to changing market demands. This new warehouse will play a key role in streamlining our supply chain and ensuring we can meet the diverse needs of our customers. We are excited about the prospects of this facility and expect it to be fully operational by November 2024, which will greatly enhance our ability to provide excellent service and support to customers throughout the region."