Elos Medtech signs agreement with global healthcare company to expand production capacity in China. The annual value of the deal is approximately CNY 90 million by 2025. Elos Medtech will invest approximately CNY 50 million in the next 2 years.
Elos Medtech has signed an amendment to an existing agreement with a global healthcare customer active in the fields of diabetes and other chronic diseases, to provide an additional CNY 90 million in annual production output by the end of 2025. The additional volume will be made by the production site in Tianjin for the Chinese market. Elos Medtech has committed to invest approximately CNY 50 million in production equipment during a two-year period to increase the output capacity to meet future demand for the Chinese market.
Elos Medtech Tianjin generates revenue of approximately CNY 70 million per year serving both the life science and dental industries from its 7,000 square meter production facility.
The local business focus enables Elos Medtech to service both local and international customers, directly at the local Chinese market. At Elos Medtech it is called "Global/Local". In an ever-changing business environment, this concept is becoming increasingly important to facilitate and secure global supply for Elos Medtech's global customers in the Chinese market.
"Elos Medtech's focused work and dedication has resulted in our customers relying on us as their development and manufacturing partner. I am very excited about this new expansion and the future opportunities it will bring to our customers, employees, and site." Says Conny Jakobsson, Managing Director at Elos Medtech Tianjin.
"The expansion is a significant step in our plan for growth and strengthens our long-term profitability. This agreement consolidates our effort to be a true global supply partner as well as our effort to service our customers wherever they do business." Says Stefano Alfonsi, Elos Medtech President and CEO.
Elos Medtech is a leading development and production partner for medical devices and components, with a focus on dental, orthopedics and life science. The company operates from facilities in Sweden, Denmark, China, and the US. The customer base comprises international medical technology companies.
Elos Medtech has more than 650 employees and a turnover of more than SEK 880 million. Elos Medtech has been listed on NASDAQ Stockholm AB since 1989. Elos Medtech's B share is categorized as a Health Care company on the Mid Cap list.
Gothenburg, April 14[th], 2023
Elos Medtech AB (publ)