Devro's capital expenditure has totalled £60m over the past two years, and finance director Simon Webb said the company will spend another £35m in 2012, including a further upgrade to its Czech factories and the addition of more capacity in Australia, which is struggling to keep up with the growth in demand for its Select sausage casing in Japan. Select, a direct replacement for traditional gut casings, commands a 15 per cent price premium to Devro's more mass market casings, and now accounts for 8.1 per cent of sales. That's up from 6 per cent at the December year-end, leaving Devro well on track to hit its target of 10 per cent of sales by 2013. Mr Webb pointed to strong growth prospects in Germany, a market in which 70 per cent of sausages still use traditional gut.