High raw material costs, currency headwinds and weak demand in developed markets depressed growth last year for sausage-casings company Devro (DVO). But big spending on capacity and efficiency over the next two years, including £50m in a new factory outside of Shanghai, China, should drive long-term growth.
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The Chinese facility will come onstream in 2015, giving Devro a foothold in the world's biggest collagen-casings market. Another £40m is being spent on a new manufacturing plant in the US, which will significantly slash production costs from 2016.