ALTDORF, Switzerland—Swiss polymer group Datwyler Holding A.G. has expanded its health care business in China with the purchase of Yantai Xinhui Packing Co. Ltd.
The acquisition, set for completion in the first quarter of the year, will give Datwyler direct access to the rapidly growing health care market in China, the Swiss group said in a recent statement.
Founded as a family-owned business in 2003, Yanati Xinhui Packing operates two sites in China's northeastern Shandong province.
The company has automated production facilities for health care elastomer components as well as its own research and development 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 $16.2 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 (this acquisition), Datwyler will fill another important strategic gap in the health care 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 Datwyler CEO Dirk Lambrecht.
"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 U.S."
Based on the revenue potential of its approximately 1.4 billion people, Datwyler expects the relevant health care market in China to grow above 10 percent over the next few years.
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