On February 6, Xie Lei, Chief Operating Officer of Carl Zeiss Greater China, announced at an event that Carl Zeiss China will purchase land in the Shanghai Free Trade Zone to build a comprehensive campus for its Greater China headquarters.The project covers an area of 60 mu, with a total infrastructure investment exceeding 600 million yuan.
Carl Zeiss, headquartered in Oberkochen, Germany, is a globally renowned manufacturer of optical and optoelectronic equipment. The company was among the first foreign enterprises to enter the Waigaoqiao Bonded Area in Shanghai in 1999. The construction of its integrated campus in Pudong this time highlights its strong commitment to investing in China and its optimistic outlook on its business in the country.
This investment is an important initiative for Carl Zeiss to deepen its localization strategy in China.In 2021, China has become the largest single market of Carl Zeiss AG globally. In the last fiscal year, the revenue in Greater China reached 15.2 billion yuan, increasing 6 times compared to 10 years ago.Carl Zeiss has been continuously increasing its presence in China in recent years. In 2022, it established two investment companies in Shanghai focusing on high-tech and the medical industry, and launched its first self-built R&D and manufacturing base in Suzhou.
Carl Zeiss, Continuously Deepening Presence in the Chinese Market
Carl Zeiss has a wide and deep presence in China, establishingMultiple production and manufacturing bases and sales service organizationsCarl Zeiss continues to make strides in the Chinese market.
In 1998, Carl Zeiss Optical (China) Co., Ltd. was officially established in Guangzhou, with its factory located at No. 1389, Jiufu West Road, Luogang District, Guangzhou. The total investment reached 30 million US dollars, covering an area of 58,000 square meters. It also has a factory site in the Sino-Singapore Knowledge City, where the third phase of the Industry 4.0 Healthy Vision Industrial Ecosystem expansion and renovation project is underway. This facility has become Carl Zeiss AG's largest global production base for high-refractive index, high-end customized functional optical lenses and advanced ophthalmic instruments. The Guangzhou factory accounts for over 40% of Carl Zeiss' global production capacity and serves as the world's only full-technology, full-category manufacturing base.
In 2006, Carl Zeiss Microimaging (Suzhou) Co., Ltd. was established and renamed Carl Zeiss Technology (Suzhou) Co., Ltd. in 2009. In 2024, a new R&D and manufacturing base in Suzhou Industrial Park was put into operation, focusing on the production of high-end equipment such as industrial microscopes, research microscopes, surgical microscopes, and precision online optical and mechanical measuring instruments. The establishment of these production and manufacturing bases has not only enhanced Carl Zeiss's localized production capacity in China but also further expanded the variety of its high-end product offerings.
In terms of sales service organization establishment, in 1975, Carl Zeiss founded Carl Zeiss Far East Ltd. in Hong Kong, China.
Established Beijing Representative Office in 1991, changed to Beijing Branch in 2008;
In 1996, the Shanghai Representative Office was established. In 1999, Carl Zeiss Optical Instrument (Shanghai) International Trade Co., Ltd. was founded in the Waigaoqiao Bonded Area of Shanghai. In 2004, Industrial Metrology Technology Co., Ltd. was established in the Waigaoqiao Bonded Area. In 2012, an enterprise-level innovation and research center was set up in Shanghai. In 2022, two investment companies focusing on high-tech and medical industries were established in Shanghai.
After the completion of the Shanghai Free Trade Zone headquarters park, it will create a synergistic effect with the Suzhou base. Public information shows that Carl Zeiss' Suzhou base has already introduced the Microscopy Division’s global product center and achieved full operation within one and a half years from its launch. The Shanghai headquarters will house the sales and service headquarters, an application training center, and the first corporate-level innovation and research center outside Germany.
Ophthalmic Giant Creates Multiple Landmark Processes in China's Localization
Carl Zeiss Meditec AG, a core business unit of the Carl Zeiss Group, focuses on the fields of ophthalmology and microsurgery, providing comprehensive solutions from diagnosis to treatment.
In China, Carl Zeiss provides medical technology solutions for ophthalmology and microsurgery diagnostics and treatment in its medical business, such as the Zeiss VisuMax 800, which uses SMILE pro technology for myopia treatment. It has also collaborated with the Eye Hospital of Wenzhou Medical University to develop the Xiaole Circle lenses, used for managing the progression of myopia in adolescents.
Carl Zeiss's main product lines in China include surgical microscopes, femtosecond laser equipment, phacoemulsification and vitrectomy machines, ophthalmic OCT, ultra-widefield fundus cameras, biometers, and microscopes.
In addition to a comprehensive range of equipment product lines, Carl Zeiss Medical's product competitiveness is also outstanding. Specifically, in the three products of ophthalmic surgical microscopes, femtosecond lasers, and biometers, Carl Zeiss Medical holds an absolute advantage with more than half of the market share; the market shares of its phacoemulsification and vitrectomy integrated machines, ophthalmic OCT, and ultra-wide-field fundus cameras also rank among the top five. As a recognized benchmark in the industry, Carl Zeiss Medical has always been the object for Chinese-produced ophthalmic equipment brands to learn from and catch up with.
In September 2022, Carl Zeiss launched its first localization project in Suzhou for scanning electron microscopes and research-grade (A-class) optical microscopes produced in China. The project aims to meet the demand of scientific research, clinical, and industrial users for high-level, high-performance microscopes made in China, while the localization of high-end microscopes is also an important step for Carl Zeiss to accelerate its localization process in China.
In July 2023, the first research-grade fully electric optical microscope manufactured outside of Germany by Carl Zeiss, the Carl Zeiss Axio Imager.M2, officially rolled off the production line at the Carl Zeiss Suzhou factory, marking another significant step forward in Carl Zeiss' localization process in China.
Image Source: Artery Network
More importantly, in the global market, the distribution of market share for the vast majority of brands shows differentiation between regions. However, Carl Zeiss medical products rank among the top in terms of market share in all major countries around the world, demonstrating their strong market position.Medical giants increase their investments in China
Looking Back at 2024: Global Medtech Giants Invest Heavily in China. According to data from VCBeat, over the past two years, more than ten multinational companies, including Boston Scientific, Olympus, KARL STORZ, Intuitive Surgical, and Carl Zeiss, have made their first investments in establishing manufacturing facilities in China. This not only demonstrates their long-term commitment to the Chinese market but also highlights the growing influence of China in the global medtech industry.
Medtronic:Establish the first digital service innovation base in China in Yizhuang, develop AI and big data-based treatment solutions for cardiovascular diseases, and focus on building medical training centers in the fields of cardiovascular, minimally invasive surgery, and neurosurgery.
Siemens Healthineers:Signed a strategic cooperation agreement with the People's Government of Haidian District, Beijing, to collaborate in areas such as the cultivation of international medical talent, the development of an ecosystem for medical technology innovation, medical-engineering transformation cooperation, and the construction of medical alliances; also signed a value partnership agreement with Beijing Tsinghua Changgung Hospital affiliated with Tsinghua University to jointly advance technological progress and practical innovation in the field of liver cancer prevention and treatment, accelerating the transformation of medical-engineering innovations.
GE Healthcare:With a research and development team of over 1,800 people in China, Carl Zeiss has developed and launched nearly 110 innovative products into the market. Currently, the localization rate of equipment sold in China has exceeded 70%. The company is driving the full series and entire chain toward comprehensive production in China. In the next three years, its R&D investment in China will double.
Market analysis points out that choosing Pudong as the location for the new headquarters park, this investment by Carl Zeiss undoubtedly values the area's locational advantages, industrial environment, and policy support. As an economic engine of Shanghai and even China, Pudong’s open and inclusive market environment, complete industrial support system, and forward-looking policy backing provide the company with vast space and unlimited possibilities for its development in China.
"Carl Zeiss is a witness and beneficiary of the reform and opening-up in Shanghai and Pudong," said Xie Lei, Chief Operating Officer of Carl Zeiss Greater China.
Against the backdrop of current healthcare reform, the Chinese government, in order to improve the health standards of the entire population, is encouraging the introduction of substantial foreign medical capital and technology, learning advanced experiences and concepts from abroad. The various links in the industry chain, such as pharmaceutical R&D, medical device manufacturing, and medical services, are gradually improving, providing conditions for foreign investment across the entire industry chain or specific segments. For instance, foreign capital can invest in the R&D and manufacturing of medical devices, leveraging China’s industrial supporting advantages to reduce costs.
Reference Article -- Arterial Network: Going Head-to-Head with Carl Zeiss, the Chinese Ophthalmic Equipment Dream Team is on the Rise!
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