Spurred by health care reforms, Chinese medical PVC compounder expands

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: April 22, 2013 11:15 am ET
Updated: April 22, 2013 11:24 am ET

Image By: Steve Toloken Huang Yimei, vice general manage of Hopefinder Polymer & Science Technology Co. Ltd.'s Shanghai factory

Related to this story

Topics Materials, China, Medical, Compounding, Materials Suppliers

SHENZHEN, CHINA — Chinese medical-grade PVC compounder Hopefinder Polymer Science & Technology Co. Ltd. is spending at least 100 million Chinese yuan ($16.2 million) on a new factory in Jiangsu province to meet rapidly growing demand, in part from healthcare reforms in China and the country's aging population.

The first phase of its new compounding facility, in the city of Changzhou, will open late next year with 30,000 metric tons of capacity, more than double the company's current production, said Huang Yimei, vice general manager of the company's Shanghai factory, in an April 17 interview at the China Medical Equipment Fair in Shenzhen.

The second stage in Changzhou will open a year later, in 2015, and will include an additional 20,000 tonnes of capacity, she said. The company currently has 20,000 metric tons of capacity at factories in Shenzhen and Shanghai.

The total investment in Jiangsu, which will include research and development labs, will be 200 million yuan ($32.4 million), Huang said.

Right now the vast majority of the company's PVC compounds are sold to factories in China that ultimately export their products, but that's starting to change as domestic demand grows, Huang said.

In particular, foreign-owned medical device factories in China that are trying to be more competitive in the Chinese domestic market are starting to replace their imported materials with Hopefinder's grades, she said.

The company said its compounds meet international standards such as ISO 10993.

Huang said Hopefinder is benefitting from government plans to substantially boost health care spending in China, including a $125 billion plan to provide a basic level of health care to all its residents and upgrade 2,000 rural hospitals by 2020.

Longer term, the company said it expects both China's healthcare reforms and its aging society to be significant drivers of demand.

As an example, demand for vinyl tubing is rapidly growing after the Chinese government recently began reimbursing hospitals for hemodialysis procedures, said Andrew See, a consultant with Singapore-based Medipro Consultancy and Services. See, who advises Hopefinder, participated in the interview at the company's booth.

China's medical device market grew from $14 billion in 2009 to $23 billion last year, and is projected to hit $38 billion by 2015, for average annual growth of 19 percent, according to data from the China Association for Medical Device Industry presented at a conference during the CMEF trade fair, which was held from April 17 to April 20.

Company executives also said they hope to increase direct exports with the new facility.


Comments

Spurred by health care reforms, Chinese medical PVC compounder expands

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: April 22, 2013 11:15 am ET
Updated: April 22, 2013 11:24 am ET

Post Your Comments


Back to story


More stories

RheTech to commercialize hemp fibers to replace glass in PP

November 27, 2014 6:00 am ET

RheTech Inc. plan to commercialize its first hemp fiber compounds in January.    More

Image

Market growing, but compounders say customers remain 'cautious'

November 27, 2014 6:00 am ET

Everywhere they've looked, North American compounders and concentrate makers have seen numbers on the rise in 2014.    More

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Image

PE prices drop for first time in two years, PP down 5 cents

November 26, 2014 10:22 am ET

North American polyethylene buyers might want to circle November 2014 in red on their calendars — since PE prices this month have fallen for...    More

Image

Deal adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew plc...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events