Lödige Industries supports SPIMACO’s largest pharmaceutical plant in Saudi Arabia

New automated storage facility allows for efficient and demand-based production processes

In 2019, Lödige Industries has completed a new high-bay distribution and storage centre for SPIMACO’s pharmaceutical production facility in Qassim, Kingdom of Saudi Arabia. The new facility allows SPIMACO to almost double its throughput rates.

About the SPIMACO production facility

SPIMACOs pharmaceutical manufacturing facility is located at the heart of the industrial zone of Qassim, some 320 km North West of Riyadh. The site of Al-Qassim Pharmaceutical Plant covers 150,000 sqm., with built area of over 60,000 sqm. and is operated by 500 highly qualified professionals. From this central point the produced goods reach everywhere in Saudi Arabia and other Middle East countries.

How SPIMACO almost doubled its throughput?

The extension of the existing warehouse became necessary since the existing facilities lacked the capacity for expansion and modernisation. Furthermore, many of the processes were manual and hence time consuming and error-prone. Since pharmaceutical products are very sensitive, it was important for SPIMACO to have a highly reliable solution tailored to their needs. Now the warehousing system is equipped with more than 5000 storage spaces, several hundred meters of conveyors for cases and pallets, two palletising robots and over 30 automated shuttle vehicles. The automation of the new system reduces manual handling as much as possible, almost doubling throughput rates.

In addition, the automation and modernisation gives SPIMACO full inventory control, quality track & trace programs and improved handling of highly delicate products governed by strict industry rules & regulations. In the highly regulated and time sensitive market for pharmaceutical products these will prove important competitive advantages for SPIMACO.

Lödige Industries undertook a strategic analysis of SPIMACO’s existing and future processes and requirements to design and integrate the new transportation and fulfilment systems, incorporating solutions from different suppliers into one custom-made system where necessary. The material handling manufacturer acted as a general contractor for the installation and commissioning to meet SPIMACO’s requirements.

The new state-of the-art warehouse provides fully automated transfer of existing production lines across multiple floors and rooms and was designed as a turnkey-project. It allows for palletising, picking, automated storage & retrieval and dispatch of pharmaceutical goods in full compliance with pharmaceutical regulations. The new facility constructed by Lödige Industries, augments an existing storage facility from 1988 and allows SPIMACO to almost double its throughput rates. In the ongoing Covid-19-pandemic, a highly capable infrastructure is of even greater importance. As a result of current demand, the company has moved from a 16h to a 24h-throughput.

About SPIMACO

Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) is a Saudi Joint–Stock company and was established in 1986 . SPIMACO Addwaeih’s core business is medical and pharmaceutical, which includes development, manufacturing and sales of pharmaceutical products and medical appliances. Moreover, SPIMACO also has ownership in number of joint stock and limited liabilities companies inside and outside the Kingdom. SPIMACO has developed a strong position in Saudi Arabia and is well positioned to sustain its growth and have a sound platform to serve export markets.

Project details:

Client: SPIMACO
Location: Qassim, Kingdom of Saudi Arabia
Completion date: 2019
Capacity: 5000 storage spaces
Usage: High-bay distribution and storage centre

Challenges for SPIMACO in expanding their existing pharmaceutical manufacturing facility

The extension of the existing warehouse became necessary since the existing facilities lacked the capacity for expansion and modernisation.
Many of the processes were manual and hence time consuming and error-prone
Pharmaceutical products are very sensitive, hence it was important to have a highly reliable solution tailored to customers’ needs

The Lödige Industries Solution and customer benefits

The new state-of the-art warehouse fully automates transfer of existing production lines across multiple floors and rooms into their new facility
Lödige Industries undertook a strategic analysis of SPIMACO’s existing and future processes and requirements to design and integrate the new transportation and fulfilment systems
Performing as a general contractor and merging a mix of different solutions into one system, Lödige Industries managed to provide a fast and reliable system that fulfils customers’ requirements for safety and quality today and supports future growth plans

“Our old distribution centre was beginning to limit our capabilities. But now with the new facility, we have modernized the existing systems and our potential for growth has become unlimited. Since pharmaceutical products are very sensitive, it was important to have a highly reliable solution tailored to our needs. By acting as a general contractor and merging a mix of different solutions into one system, Lödige Industries managed to provide us with a fast and reliable system that fulfils our requirements for safety and quality today and supports our future growth plans.”

- Khalid Al-Khattaf, CEO of SPIMACO

“The contract demonstrates the ability of Lödige Industries to deliver full turnkey projects, beyond the materials handling equipment in this region, as it does elsewhere around the world. This was a highly complex project. To ensure the new facility runs smoothly across production, SPIMACO has engaged Lödige Industries for operational management of the facility and resident maintenance for the initial period of operation.”

- Guy Walker, Managing Director at Lödige Industries Middle East