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

Image

China's Shide Group, BASF unveil 'revolutionary' all-plastic window profile

April 23, 2014 9:10 pm ET

SHANGHAI — The PVC window profile market in Asia is expected to increase four-fold by 2025, and Chinese building products maker Dalian Shide...    More

Worker dies in fall at Formosa Texas plant

April 23, 2014 4:04 pm ET

A subcontractor died April 22 after falling 25 feet during routine cleaning operations at a Formosa Plastics Corp. USA facility in Point Comfort,...    More

Image

Milliken expanding SC plant for additional PP clarifying agent capacity

April 23, 2014 3:42 pm ET

American chemical company Milliken & Co. has announced plans for a major expansion in capacity for its Millad NX8000 clarifying agent for...    More

Image

CPM Extrusion, ECON launch new line of underwater pelletizers

April 23, 2014 11:25 am ET

CPM Extrusion Group and ECON GmbH unveiled their brand new EUPC line of underwater pelletizers today at ChinaPlas held in Shanghai, China.    More

Clariant says Asia holds the key to growth

April 23, 2014 3:52 pm ET

Clariant AG is based in Switzerland, but its eyes are firmly focused further east.    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events