Taipei, Taiwan — Changing market conditions in China have halted a planned joint venture to make medical injection molding equipment in China between Taiwan's Fu Chun Shin Machinery Manufacture Co. Ltd. and the Chinese medical device company Shengguang Medical Instrument Co. Ltd.
Shengguang decided to put a temporary halt to the joint venture, although it's not clear how long the venture will be on hold, according to executives with FCS in an Aug. 15 interview at the Taipei Plas trade show in Taipei.
The two companies broke ground on the site and made a public announcement in late 2014, and in subsequent interviews FCS said the venture would make several hundred injection molding machines a year and related equipment for the local market.
Shengguang, in Pingdingshan, Henan province, is a large maker of medical equipment in China.
“The partner for the Henan project, they are the No. 2 medical parts producer in China, but recently because the market situation has [been] a big change for them, they decided to temporarily hold this project,” said John Hsieh, area manager for FCS, in an interview at Taipei Plas.
He said FCS, based in Tainan, Taiwan, has allocated the money for investment and had its own staff ready to relocate to Henan. But Shengguang put a halt to the project.
The 275,000-square-foot factory was to occupy land in Shengguang's medical device incubator park. Shengguang makes disposable syringes and IV supplies.
FCS, which is Taiwan's largest maker of injection molding machines, also had designed the Henan investment to relieve pressure on its two factories in China, in Dongguan and Ningbo.
FCS Director Benjamin Lee said the company's mainland China factories remain at capacity and the company is looking at other investments.