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Omrix hires S&A Design to build new manufacturing plant
By Elaine Rigoli
Tampa, Fla., Aug. 7 - Omrix Biopharmaceuticals Ltd. has entered into a construction agreement with S&A Design and Construction Ltd.
S&A will design and construct, on a turn-key basis, Omrix's new manufacturing plant. The plant will be located in a facility currently under lease to the company in Jerusalem, Israel.
Omrix said it will use the plant for the production of its biosurgical products, including its second generation fibrin sealant, Evicel.
Under the agreement, S&A will be responsible for the design, construction and validation of plant equipment and for the design, construction and validation of the plant's support systems, including systems providing electricity, steam, air conditioning and water.
The total consideration to be paid by Omrix to S&A under the agreement is $15.9 million. S&A is required to maintain an unconditional bank guarantee in favor of Omrix in the amount of $1.5 million. The amount of the required guarantee will be reduced to $750,000 upon the completion of 80% of the project and returned to S&A upon the full completion of the project, according to a news release.
Under the agreement, the plant is required to be completed by the end of March 2008, and Omrix is required to pay S&A a bonus of $300,000 for completion. S&A will be required to pay to the company a fine in the amount of $50,000 per month for any delay in completion exceeding 60 days from the applicable completion date, the release said.
Omrix is a Jerusalem, Israel-based biopharmaceutical company and an indirect wholly owned subsidiary of Omrix Biopharmaceuticals, Inc.
S&A is a Jerusalem, Israel-based engineering company.
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