Simris Group AB confirms that it will temporarily pause production at its facility in Hammenhög, Sweden
The Simris Board of Directors have resolved to temporarily pause production operations at its microalgae facility in Hammenhög, Sweden. It is clear that the optimisation of the facility for profitable production at increased scale will require between €600k and €800k of capital expenditure and the company needs time to properly determine the design, lighting, and other equipment needed to grow highly specialised biomass for new and existing customers. Simris management has therefore confirmed that it will temporarily pause biomass production at its Hammenhög manufacturing facility. The company’s intention is to resume operations once the feasibility study is completed, strategy agreed, customers secured, and funding and other support in place. This pause in Hammenhög operations is made to ensure that all cash resources are focused on the Simris Biologics business, where the Company is seeing encouraging progress in commercial discussions and in the further development of the science - not only within the ADC field, but also beyond this into other pharma applications and cosmetics.
Simris’ staff at its Hammenhög operations were informed of this decision at the time of this press release. Simris will now engage in consultation with unions that represent its staff.
Simris Group Chairman, Steven Schapera commented, Simris was founded on innovation, solving problems in a different way. This thinking is embedded in our DNA, and this review of Hammenhög operations gives us time to once again be innovative in our thinking. Simris Hammenhög must be profitable and contribute positively to the Group, the turnaround of which is now well underway. The vast potential that lies within Simris Biologics, our 2022 acquisition in the pharma space, is soon to be commercialised and we must not be distracted from that objective. This pause in operations at Hammenhög enables Management to gather all the necessary feasibility information, continue discussions with Capex investors interested in a more sustainable approach to production, and finally to make a fully-informed decision that creates wealth for Simris shareholders.”