Gerresheimer Regensburg GmbH has announced plans to increase production of its medical injection moulders four-fold in its China facility over the next 18 months.
The German packaging supplier will increase its capacity from eight injection moulding machines – used to produce drug delivery systems like inhalers – to 30, and from 100 employees to 350, at its Dongguan facility by the end of 2012.
Stephane Pianigiani, managing director of Gerresheimer Medical Plastics Systems Dongguan, told Plastics News that the expansions in China are all part of the companies plans to reduce production costs by working in an up-and-coming area.
He said: “There’s always been reluctance from customers in the medical device industry to come to China, but that is changing,”
And according to Pianigiani, the company also plans to open another manufacturing site or medically-oriented injection moulding facility in the country.
Of their growth strategy, he added: “In the medium to long-term we will not be a leader in China with only one plant in Dongguan.
“By January 2013, we will have another plant running.”
The move is not the first time Gerresheimer has cashed in on the benefits of working within developing industries.
In November last year, the company opened a representative office in Mumbai, India, and told in-PharmaTechnologist it was part of its plans to capitalize in the emerging market.
The office provided the firm with a new legal entity, giving the company the opportunity to operate within India in the future.
Jens Kürten director of corporate communication & marketing said: “We see a lot of opportunities, not only in India, but in South America, China, Russia, and other countries.”
On home turf
Future plans for Gerresheimer also include providing more drugs for the areas local to their facilities.
Pianigiani added that over 95 per cent of the products made in Dongguan are exported to North America and Europe, and now the business plans to change that.
“We definitely see opportunity with the size of the population and the portion of the population that can afford that product,” he said.