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February 03, 2020 11:48 AM

Nypro renamed Jabil Healthcare, to invest $18.5M in NC

Frank Esposito
Senior Staff Reporter
Plastics News Staff
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    Jabil
    Borges

    Jabil Inc. is highlighting a medical focus for its Nypro injection molding unit by renaming it and combining it with its other medical businesses, while also investing $18.5 million to expand a plant in Asheville, N.C.

    Nypro — No. 7 in the most recent Plastics News ranking of North American injection molders — will be merged with other Jabil businesses into Jabil Healthcare and make medical instruments for orthopedics, spine, trauma and similar markets, officials with St. Petersburg, Fla.-based Jabil said in a Feb. 3 news release.

    The combined unit will be led by Steve Borges and will employ 20,000 at 35 global sites.

    In a Feb. 5 phone interview, Borges said that when Jabil acquired Nypro in 2013, "the premise was to provide holistic service to customers."

    At that time, he said, Jabil already had a core health care business that included assembly work. After the acquisition, Nypro customers could have that work done at Jabil instead of with outside firms.

    "Nypro customers took advantage of our electronics and assembly work," said Borges, a 27-year Jabil veteran. "The businesses already are integrated at some sites.

    "It was time to bring it all together as Jabil Healthcare. The goal is always to get the product to the patient with the right quality."

    Megatrends in health care about the needs of an aging population and increased use of at-home products have continued, according to Borges.

    "More people want to control their health care, and there's been an increase in digital services," he said. "There's great diversity in our health care business. We can bring more value both to the patient and the OEM.

    "Our business can have a major effect on wellness around the world and help more and more patients," Borges added. "We're in a good place."

    Jabil Healthcare serves five sectors in the health care market: medical devices, orthopedics, diagnostics, pharmaceutical delivery systems and consumer health. Officials said that in each of those sectors, demand for value-based care solutions "is forcing significant changes in the evolution of health care products and services and driving digital health innovations."

    "By harnessing the power of the Jabil and Nypro teams, we are in the unique position to accelerate technology advancements and augment the value we bring to our customers, their patients and the health care industry," Borges said. "With the rise of digital health and additive manufacturing, the time is right to unite our diverse capabilities and domain expertise under one strong brand."

    Officials added that the combined Jabil Healthcare "unifies the company's medical industry know-how with deep cross-sector experience in injection molding, electronics, sensor integration and additive manufacturing."

    In Asheville, Jabil will invest $18.5 million in expanding facilities and to bring in new technology, machinery and equipment, according to a Jan. 31 news release from the Asheville-Buncombe County Economic Development Commission.

    The expansion won't include much new square footage, but will include automation equipment, as well as new molds and presses, Borges said.

    The Asheville plant "does a great job with autoinjectors and inhalers," he added. "We're excited that business has continued to grow."

    The expansion in Asheville should be completed in early 2021 and will create 68 new jobs. Jabil currently employs 325 in Asheville. The new positions will include engineering, production, quality control and management.

    Nypro was founded in 1955 and was acquired in 2013 by Jabil. In Plastics News' most recent ranking, Nypro had an estimated $750 million in annual sales in North America. Jabil has total corporate sales of $23.5 billion.

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