OrbusNeich to Build Its Largest R&D and Production Base in Hangzhou City

OrbusNeich Medical (Zhejiang), a wholly-owned subsidiary of OrbusNeich Medical Group, has signed a commercial agreement with Hangzhou Fuchun Bay New Town Management Committee to build a R&D and production base for vascular interventional devices with the total investment of approximately RMB 300 million.

Located in Fuchun Bay New Town, Hangzhou city, Zhejiang province, East China, the 20,000 m2 R&D and production base will mainly develop and manufacture medical devices such as PCI and PTA intervention products, as well as structural heart disease interventional products, with annual production capacity of 2.4 million units of products. It will be OrbusNeich’s largest R&D and production base, as well as a strategic location in the Yangtze River Delta. Capitalizing on the advantages of Yangtze River Delta as a transportation hub and talent pool, the Group can expand its production capacity, while enhancing its overall operational capabilities.

Mr. David Chien, Chairman, Executive Director and Chief Executive Officer of OrbusNeich, said, “Since listed on HKEX last December, the Group has pushed forward with implementing its corporate development strategies, with capacity expansion being an important component. In recent years, Fuchun Bay New Town (Chinese:富春湾新城) has vigorously developed such emerging strategic industries as information technology, artificial intelligence, biotechnology, high-end equipment, with preferential policies in place in relation to land, talent and R&D for such enterprises. As a major global medical device manufacturer owning more than 180 granted patents, OrbusNeich setting up an operation base there will bring new and advanced technologies into the region and facilitate local industrial upgrading. We believe the cooperation will benefit the development of both the Group and Fuchun Bay New Town.”

Currently, the Group has production facilities in Shenzhen, the PRC and Hoevelaken, the Netherlands, with an aggregate annual designed capacity of approximately 1,350,000 units of balloon products and approximately 56,000 units of stent products. According to the report from China Insights Industry Consultancy, the global PCI instruments and PTA instruments markets are expected to grow at a CAGR of 12.1% and 11.1%, respectively, between 2021 and 2030, pointing to huge growth potential. For the Group, it has in the pipeline about 40 products in different development stages for new business segments such as neuro-intervention and structural heart disease intervention products, and new product series. All circumstances considered, the Group expects its existing production capacity to be saturated in the future, commanding building of new production facilities to meet medium to long-term market demand and for effective capacity allocation.

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