"We're putting a significant amount of energy into our health segment," said Jason R. Durkin, the director of market development for Nypro Healthcare. "It's going to be our largest segment."

Nypro, a precision injection molder based in Clinton, Mass., serves a variety of different markets, including healthcare, electronics and telecommunications, consumer, industrial, automotive and packaging. Currently, healthcare comprises about 30 percent of the company’s business. "It depends on the economy," Durkin said. "In the past, we have been more focused on electronics."

Durkin spoke at Medtec 2009 in Shanghai, an annual medical technology trade show. Nypro operates five facilities in Hong Kong, Suzhou, Shenzhen, Tianjin and Guangzhou.

"We're definitely seeing a trend," he said. A few years ago, healthcare companies came to China in expectation of a huge market and cheap manufacturing. They soon found that the quality of manufacturing in the country could not meet Western standards. "They had trouble establishing a supply chain," said Durkin.

While there is a significant opportunity in Asia, Durkin says it takes time to develop medical products and obtain regulatory approval. It is hard to convince manufacturers focused on speed to take on a project that could take five to seven years to be profitable. Many healthcare companies are taking a practical approach, carefully building up a supply chain before they enter the market.

Nypro is not the only company increasing its stake in the healthcare market. Amcor Flexibles is currently in the process of acquiring parts of Alcan Packaging. In addition to food packaging in Asia and Europe, the company has bid for Alcan's global pharmaceutical packaging operation. The acquisition will include some manufacturing facilities in Asia.

"We're committed to the Asian market," said Jonathan Andrews, business development manager for Amcor Flexibles' medical division. "There are a lot of companies relocating their manufacturing out here and we follow that business."

Durkin admits that there are still some challenges ahead for medical plastics in Asia. Right now, most of Nypro's clients in China make products for export. In the future, he expects the balance will change and China's domestic market will play a larger role. The company will also be challenged to make the switch from hand-assembled products to a fully automated process. "The trend is toward automation," he said.

GW Plastics, a global precision manufacturer operating a fully automated plant in Dongguan, Guangdong province, is hoping that will continue to be a draw as the market grows. "There is more and more interest in China," said Brenan Riehl, president and CEO of GW Plastics. "Healthcare in China is going to require more and more sophisticated instruments – the potential for growth is very high."