New factory in China

With the opening of a new 22,000-square metre production centre in Zhuhai in south-western China, Coloplast puts a temporary halt to the expansion of its production facilities.

 

The establishment of the production centre is part of Coloplast's global production strategy from October 2006 to achieve world-class production in the form of high quality on time while at the same time reducing total unit costs by five per cent a year from 2008. The USD 14 million production centre is to provide jobs for an additional 600 employees in Zhuhai, bringing the total number of employees in China to 800.

The opening takes place less than two months after Coloplast's opening on 20 September 2007 of a similar production centre in Nyírbátor in eastern Hungary - Coloplast's second production centre in Hungary. With this, the company puts a preliminary halt to the expansion of its production facilities that is aimed at strengthening its global competitiveness through more cost-effective production.

In the period up to 2012, the number of factories worldwide will be cut back from 12 to eight, and approximately 700 jobs will be moved out of Denmark - without any Danish employees' being made redundant. The number of employees in production worldwide is expected to grow from 3,100 to 4,300 in the same period.

In 2012, production will be distributed as follows: Denmark: approximately 20 per cent (previously 50 per cent), Hungary approximately 45 per cent (previously 20 per cent), China approximately 25 per cent (previously 5 per cent) and the USA and France approximately 10 per cent (previously 25 per cent).

The production strategy from 2006 was shortly after followed up by a reorganisation of headquarters. In February 2007, the former divisions within ostomy care, urology & continence care and wound & skin care were brought together in a number of global functions that are today engaged in research & development, marketing and sales. At the same time, the subsidiaries, which are responsible for sales, were reorganised into four large regions.

At the opening of the production centre in Zhuhai, Coloplast's Head of Production, SVP, Jørgen Bundgaard Hansen, expressed his delight that yet another important milestone had been achieved: "I am very pleased to see the progress we have made in China since our entry into this country with a sales subsidiary and small-scale production 12 years ago. With the support of the Chinese government, we have now paved the way for world-class production of medical devices, not just for the Chinese market, but also for the whole world. At the same time, we have achieved a sound base for intensified growth both in China and globally," said Jørgen Bundgaard Hansen.

Coloplast China was established in 1995 and started up small-scale production of medical devices in China in 1996. Today, the Beijing office is in charge of sales.

Coloplast has taken the initiative for the establishment of Coloplast Academy in China to offer health care professionals across China the latest knowledge concerning the treatment methods that relate to Coloplast's innovative products.