Burgdorf – On 25 April 2023, the groundbreaking ceremony for Ypsomed's (SIX: YPSN) new production facility took place in the Changzhou National Hi-tech District. In order to be able to efficiently serve the rapidly growing Chinese market for injection systems, Ypsomed is investing over CHF 35 million in the new manufacturing plant in a first phase. Production is expected to commence in the second half of 2024.
The groundbreaking ceremony heralded the start of construction of the new production facility in the Changzhou Industrial Park. The Changzhou National Hi-tech District (CND) industrial park covers 439 km2 and is home to more than 10,000 companies, around 1,500 of which are from abroad, and is geared towards the high-tech industry. Construction of the new Ypsomed plant will take about one year. The plant is expected to start operations in the second half of 2024. The Changzhou site will be home to production, logistics warehouse, quality control and technical maintenance, and will manufacture injection systems for the Chinese market. The plant will be equipped with the same state-of-the-art plastic injection moulding machines, printing equipment and automated assembly machines as the plants in Switzerland and Germany.
In China for China
"The Chinese market is growing rapidly and the number of our local customer projects is constantly increasing. Due to this growth potential, the establishment of a local production facility is obvious for us. We are not moving capacity out of Europe, but expanding it. With our new production plant in China, we are closer to our Chinese customers and shorten the supply chains considerably, which will also have less of an impact on our carbon footprint,"
says CEO Simon Michel, explaining the move to China.
Ypsomed has already been supplying products such as the reusable ServoPen to China for over 15 years. In the future, pharmaceutical companies will also increasingly use disposable products in China, such as the UnoPen or the YpsoMate. Business with disposables is more volume-intensive, which is why the proximity of production to the place of delivery is sought. The city of Changzhou is located in the Yangtzi River Delta, to the west of the metropolis of Shanghai, and with a population of over five million is an up-and-coming trade and industry location.
Facts and figures on the new Ypsomed production site in Changzhou
- Around 15'000 m2 of land, option for a further 5'000 m2
- Around 15'300 m2 of productive floor space
- Around CHF 16 million in planning and construction costs
- Around CHF 22 million investment in production equipment (in the first of three expansion stages)
- 12-month construction period and start of production expected in the second half of 2024