Figure | Paixin Creative
Another multinational device giant builds a factory in China.
Boston Scientific Builds Factory in Shanghai
October 9,Boston ScientificAnnounced that it will establish the first production and manufacturing base in China in Shanghai.
Boston Scientific stated that the company's plan to establish its own production and manufacturing base will be located in the Life Blue Bay Pharmaceutical Specialty Park in the Lingang Special Area. In the future, the medical devices produced at this base will mainly supply the Chinese market, with domestically manufactured products helping to improve the accessibility of cutting-edge medical technologies.As a giant in the medical device field, Boston Scientific has made frequent moves in localization in recent years.In July this year, BostonBoston Scientific Corporation Signs Cooperation Framework Agreement and Service Framework Agreement with CenoVas Medical, to Collaborate on Product Global Commercialization, Manufacturing Services, and R&D in the Next Three Years.According to the agreement, during the three-year period from 2023 to 2025, the upper limits of the transaction amounts for the manufacturing services provided by Cercor Medical to Boston Scientific are $5 million, $8 million, and $10 million, respectively.Currently, Cercor has sizable manufacturing plants in Beijing, Shenzhen, and other places. Through this collaboration, Boston Scientific is expected to achieve cost reduction and efficiency improvement in its supply chain, thereby expanding its local R&D and manufacturing capabilities in China.In addition, the two parties will carry out a series of cooperation in R&D and CSO. Between 2023 and 2025, the upper limits of transaction amounts for R&D support and CSO services provided by CinnoTech to Boston Scientific are $60 million, $110 million, and $145 million; the upper limits of transaction amounts for R&D support and CSO services provided by Boston Scientific to CinnoTech are $50 million, $90 million, and $120 million.In March this year,Boston Scientific has also officially reached a commercial cooperation agreement with SonoScape Medical. The two parties plan to establish a long-term partnership for the commercial promotion and market sales of a single-use electronic choledochoscope (percutaneous) in mainland China.In recent years, the number of minimally invasive surgeries in China has continued to rise, and disposable endoscopes have broad market potential. Zhang Jun, President of Boston Scientific Greater China, stated that this collaboration will expand Boston Scientific's product portfolio in the field of endoscopic interventions and represents the company’s latest effort to integrate into and build a localized medical innovation ecosystem in China.According toThe Daily Economic News reported that Boston Scientific has not yet disclosed specific details about the investment scale and schedule planning for its Shanghai production base. Further progress awaits additional information disclosure.02
Multinational Giants Launch "Advanced Mode" of Localization in China
It is reported that the factory site of Boston Scientific this time is located in the Lingang New Area of the Shanghai Free Trade Test Zone. In 2021, Medtronic also settled its technology and industrial base here, and currently, the construction of the first production line has officially started.With the development of China's economy, foreign brands have always maintained a high level of attention to the domestic market, coupled withDriven by industry policies such as volume-based procurement, an increasing number of multinational device giants are deepening their focus on localization strategies in China.In September, Nanchang Economic and Technological Development Zone held a (video) signing ceremony with Fresenius Kabi Group of Germany, confirming that the production plant for blood component separators will be entirely relocated from Germany to Nanchang Economic and Technological Development Zone. This project marks the fourth capital increase and expansion by Fresenius Kabi Group in Nanchang since its establishment in China, and it will realize the localized production of blood component separators in China.The fourth phase of this capital increase construction is a production project for blood component separators. The medical devices produced are mainly used for the treatment and adjuvant treatment of various diseases such as hematological tumors and autoimmune diseases, and are widely utilized in hospital departments such as hematology, rheumatology and immunology, and pain rehabilitation.In June this year, Siemens Healthcare's first diagnostics production and R&D base in the Asia-Pacific region — Siemens Laboratory Systems (Shanghai) Co., Ltd. — officially commenced operations.
According to official information, Siemens Healthineers' Shanghai diagnostic reagent manufacturing base has a total investment of nearly 3 billion RMB, with a construction area of 35,000 square meters. After full production, the facility will manufacture a variety of immunoassay reagents for clinical testing of cardiac, thyroid, sex hormone, and cancer-related conditions, as well as calibrators, diluents, and quality control products for immunoassay diagnostics. The estimated annual production capacity will reach 600 million tests.According to data disclosed by Wang Hao, President of Siemens Healthineers Greater China, in the second quarter of fiscal year 2023, approximately 75% of the products sold by Siemens Healthineers in China were locally produced. It is expected that in 2023, Siemens Healthineers will release nearly 20 new products manufactured in China.In addition to building factories, the localization process of multinational giants also includes cooperation at the technical level. Recently,Philips announced the official merger of the "Philips China Innovation Center" in Shenzhen with the R&D personnel related to the in-hospital patient monitoring business, establishing a brand-new Philips In-Hospital Patient Monitoring Business R&D Team in China.Philips stated that the establishment of the Philips Monitoring Business Group's China R&D team will further strengthen the "end-to-end" local innovation and R&D capabilities for in-hospital patient monitoring business in the Chinese market, thereby better serving Chinese customers.
Amidst the fierce market competition, the localization process of multinational giants is gradually upgrading, evolving from "production-driven" to "dual-driven by production and innovation," starting the shift from "Made in China" to "Created in China."
03
Policies Encourage Fair Competition
In recent years, relevant measures to encourage foreign investment have been issued in many parts of China to ensure a fair competitive position for foreign enterprises in the market.On August 13, the State Council released the "Opinions of the State Council on Further Optimizing the Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment." It clearly pointed out that:It is prohibited to exclude or discriminate against foreign-invested enterprises and their products and services by limiting brands or using foreign brands as an excuse, and it is not allowed to impose additional conditions on foreign-invested enterprises and their products and services for enjoying policies.In October 2022, with the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce publicly issued Decree No. 52, fully releasing the "Catalogue for the Guidance of Foreign Investment Industries (2022 Edition)," which officially came into effect on January 1, 2023.The main changes in the new edition of the directory include:Continue to encourage foreign investment in the manufacturing sector. The national catalog will keep prioritizing manufacturing as a key area for foreign investment, aiming to enhance the level of industrial and supply chains. New or expanded items related to components, parts, and equipment manufacturing have been added.. LikeBiopharmaceuticals and high-performance medical equipment, electronic endoscope manufacturing, hemodialysis machine, blood filtration machine manufacturingAll are included in the catalog.At the R&D level, the General Office of the State Council forwarded the Ministry of Commerce and the Ministry of Science and Technology's "Several Measures to Further Encourage Foreign Investment in Establishing R&D Centers" at the beginning of the year, which pointed out thatEfforts should be made to increase support for foreign-invested enterprises setting up R&D centers in China to carry out scientific and technological research and innovation activities, so as to better leverage their positive role in serving the formation of a new development pattern and promoting high-quality development.In the medical device field, the Chinese market is still in a stage of rapid development. An increasing number of multinational giants are deepening their localization in China, which...The upgrade of China's medical device industry holds tremendous positive significance, and the future competition in China's device market will also escalate to a new dimension.
Scan the QR code below to enterCpharm Medical Device Exchange GroupMore industry information, welcome to exchange
Welcome to add for communication and submission(Please indicate industry + position)
