Datwyler grows in China with healthcare supplier acquisition

healthcare business in China with the purchase of Yantai Xinhui Packing.

The acquisition, set for completion in the first quarter of the year, will give Datwyler direct access to the rapidly growing healthcare market in China, said a recent statement by the Swiss group.

Founded as a family-owned business in 2003, Yanati Xinhui Packing operates two sites in China’s north east Shandong province.

The company has automated production facilities for healthcare elastomer components as well as its own R&D and compounding units.

Products include butyl rubber stoppers, polyisoprene rubber discs, medical device gaskets and vial caps, according to Yanati Xinhui Packing's website.

The Chinese manufacturer employs 170 people and has annual sales of CHF15 million (€14.5 million).

The purchase will expand Datwyler’s presence in China, adding to the group's existing plants for the automotive and industrial markets with 1,500 employees.

“In doing so [acquisition], Datwyler will fill another important strategic gap in the healthcare solutions business area and have its own production plants in all currently relevant markets,” the group said.

“Yantai Xinhui Packing boasts high technological standards in its production,” said Dirk Lambrecht, Datwyler CEO.

“By applying our additional core competencies in solutions design and materials expertise, we are creating an optimal platform to accelerate growth in the Chinese market,” he added.

According to Datwyler, China is “the biggest emerging market for pharmaceuticals,” and is the ‘second largest national pharmaceutical market after the US’.

Based on the revenue potential of its approximately 1.4 billion people, Datwyler expects the relevant healthcare market in China to grow above 10% over the next few years.