Nypro Inc. is expanding medical operations in China and Europe, as part of a strategy to boost its medical business to 40 percent of its total sales over the next two years.
We broke ground last month and will be doubling the capacity of our plant in Chartres, France, to 50,000 square feet, said Brian Payson, vice president of business development for Nypro Healthcare. That expansion will include a clean room and is set to be completed in March.
Nypro also is doubling the size of its Suzhou, China, medical plant to 30,000 square feet, with that expansion scheduled to be completed by year-end, according to Payson. That expansion is the first phase of a longer-term plan to double our manufacturing footprint in China in the next two years, he said.
Asia continues to be where we put a lot of our energies, because our customers are manufacturing there, Payson said in an interview at the Medical Design & Manufacturing East show, held June 9-11 in New York.
Medical business now makes up about 30 percent of Nypro's total sales.
For its fiscal year ending June 30, the firm's total sales will be up roughly 6 percent, compared with 9 percent growth for the previous year, Payson said. The Clinton, Mass., injection molder is projecting organic growth of 7 percent for fiscal 2010.
However, he said, Nypro has several acquisition targets in the works right now that could boost overall sales growth. We are still extremely strong financially, so we can take advantage of opportunities that could be better priced than in years past. We want to increase our offerings, our infrastructure in Europe, Payson said.
We are looking at acquiring companies with technologies we may not possess, particularly in the area of drug delivery and diagnostics.
We can get into markets faster if we acquire an established infrastructure, an established engineering infrastructure.
He said Nypro continues to evolve, with an emphasis on offering customers services they need.
At one point in time, we were all about precision-molded parts, Payson said. But now 60 percent of our revenue is directed from services and solutions we offer after our parts are molded. Our customers ask us to do everything from design to tool building to production and distribution of their parts to end markets. That is a huge shift, and we see it growing more and more each day.