Center
J&J breaks ground for biggest base
By Hu Yan (China Daily)
Updated: 2006-09-14 08:43
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The factory, in Suzhou Industrial Park, in East China's Jiangsu Province, is being built to lower production costs and strengthen the company's presence in the booming Chinese market.
Johnson & Johnson Medical (Suzhou) Ltd will cover 16,000-square metres and is expected to go into operation in the fourth quarter of 2007.
With an initial investment of US$47 million, the project is the eighth Johnson & Johnson's affiliate to be established in China since the 1980s.
The new plant will manufacture medical devices for surgery ranging from joint reconstruction and spine trauma to sports injuries. Products will be branded by Johnson & Johnson's Depuy business.
Over time, the facility will manufacture medical devices for other surgical and interventional procedures.
Initially, the facility will employ more than 200 people in production, administrative and warehousing capacities; within 10 to 15 years, around 2,000 people will be hired.
China's healthcare industry has growing rapidly in recent years, with sales of medical devices increasing nearly 30 per cent every year.
As one of the leading medical device providers, Johnson & Johnson has already had "very strong growth" in China, and labels the nation a "priority market," according to Area Manager International Johnson & Johnson Medical Greater China Benjamin Avancena.
Currently, Johnson & Johnson has just one medical device plant in Shanghai, producing Ethicon sutures. All other medical device products are imported to China, driving prices up.
Establishing a large localized plant is a crucial part of the company's development plan for China.
(China Daily 09/14/2006 page11)