Sharp increase in capital spending Audited

In 2009, Merck invested a total of € 467 million in property, plant and equipment. This was € 73 million or 18% more than in 2008. As a result, the ratio of capital spending to total revenues increased to 6.0% in 2009 compared with 5.2% in 2008.

Individual investment projects, each with a value of more than € 1 million, accounted for around two-thirds of capital spending. In regional terms, Europe accounted for 85% of the total, with the focus on Germany and Switzerland. In Germany, Merck invested € 153 million in both new and expanded production capacities as well as in research and development facilities in Darmstadt and Gernsheim in particular, our two largest production sites. In Switzerland, capital spending totaled € 198 million and mainly focused on the expansion of our biopharmaceutical production facilities.

In North America, we invested € 32 million – the majority of which went toward the expansion of pharmaceutical research in Boston. Capital spending in Latin America totaled € 15 milion. Our subsidiaries in Asia accounted for a total capital spending volume of € 23 million, with the focus on South Korea, Japan and China, particularly for the Chemicals business sector. Capital spending by the Pharmaceuticals business sector totaled € 327 million, with the Merck Serono division accounting for the majority of this amount. The main focus of the investments was on the expansion of our biotech production capacities in Corsier-sur-Vevey, Switzerland, which again in 2009 represented the single largest investment project of the Merck Group. Around 15% of capital spending in this business sector related to headquarters in Darmstadt.

Capital spending on property, plant and equipment