Accellent opens plant in Penang

ACCELLENT Inc aims for a sizable share in Asia Pacific’s medical device market, despite a weakened economic climate that has reduced the growth of the medical sector, following the establishment of its new plant in Penang.

Its president and chief executive officer Donald Spence said its new manufacturing plant in Penang would help to increase Asia Pacific’s sales contribution to the company’s annual revenue.

“Presently, the sale contribution from Asia Pacific is insignificant but with the new manufacturing facility in Penang, which is also the first in Asia, we are aiming for a sizable market share in the medical device segment.

“Although there is a global slowdown, the medical device market is still growing, albeit at a slower pace, particularly for the emerging economies,” he said.

Spence was speaking to reporters at a press conference after the launch of its new manufacturing facility by Penang Chief Minister Lim Guan Eng on Wednesday.

Spence said Penang was chosen because of its proximity to the growing Asian market and its stable political environment.

“We will commence operations in Penang at the end of next month or in early 2012.

“The plant here is equipped with state-of-the-art technology to produce high quality products.

“Our customers include leading medical device companies, to whom Accellent provides fully integrated manufacturing services that include engineering design, prototyping, assembly for medical devices used in cardiology, endoscopy, orthopaedic, and neuro-modulation markets,” he said.

Headquartered in Massachusetts, Accellent has 15 manufacturing facilities in the US, and also manufacturing operations in Germany, Ireland, Mexico, and the United Kingdom.

For the six months of 2011 ending June 30, the company posted a net loss of US$7.2mil (RM22.89mil) in the first six months of 2011 compared with a net loss of US$6mil (RM19.08mil) in the same corresponding period.

Its net sales increased 9.2% to US$272.7mil (RM867.18mil) in the first six months of 2011 compared with $249.8mil (RM791.18mil) in the same corresponding period.