Year in review: Medical device makers become more versatile

It's an exciting time to be in the medical industry, projected to grow significantly by many forecasts. That includes suppliers to medical device manufacturers, who spent another year adding pieces to their operations in an effort to provide the most services possible.

Ansell in transition

Ansell Ltd. is set to look very different going forward.

The firm divested its worldwide Sexual Wellness business, which included its latex and non-latex condom operation and plants in three countries, for about $600 million.

At least $40 million of the proceeds will enable it to enact a cost reduction program expected to deliver annual pre-tax savings in excess of $30 million by fiscal 2020.

The firm also launched a four-point transformation program, impacting all of its global operations. Ansell plans to make a cash investment of up to $100 million through 2020 to cover the project, which includes: streamlining its three global business units; improving the effectiveness of its global supply chain; optimizing manufacturing operations at its 13 plants worldwide; and accelerating investment in technology and automation.

The plan already saw its Single Use and Medical businesses merged into a $750 million Healthcare business unit. Its Industrial unit will continue to manage all mechanical and chemical hand and body protection products, accounting for $700 million in sales.

FMI enhances U.S. footprint

FMI, the medical subsidiary of Flexan L.L.C., got a lot bigger in 2017.

The firm opened the year with the acquisition of Medron, a medical device contract manufacturing services company based in Salt Lake City. The deal brought FMI a number of outsourcing services, such as high volume manufacturing, customer private label capability, design engineering, product development and prototyping. It works with a variety of materials, primarily urethanes, silicones and thermoplastics.

In June, FMI added thermoplastic extrusion capabilities through new equipment and personnel.

And in May, the firm relocated to a larger 70,000-sq.-ft. building in Lincolnshire, about 25 minutes from its previous Chicago-area facility. The move more than tripled its footprint, consolidated operations that were previously spread out in three buildings and quadrupled its clean room space to 20,000 square feet.

Lubrizol prioritizes Vesta

Lubrizol Corp. has made its Vesta Inc. subsidiary a priority ever since bringing it into the fold in 2014.

The firm said in June that it was committing $60 million to its LifeSciences business, which consisted of moves designed to enhance its Vesta unit as well as its overall medical presence.

In March it established a partnership with Compounding Solutions in a deal to source and develop medical thermoplastic polyurethane compounding abilities.

In September, the firm invested $10 million to add 71,000 square feet and separate Class 7 and 8 clean rooms to Vesta's Franklin, Wis., facility, which produces implants and drug-eluting devices using liquid silicone and high consistency silicone rubber. The project will bring 250 new jobs to the facility, which currently spans 200,000 square feet with 570 employees.

Freudenberg grows overseas

The trend of becoming a one-stop-shop for medical device OEMs drove many investment decisions for suppliers to the medical industry in 2017.

Freudenberg Medical was no exception.

The firm invested about $10.7 million to add 45,000 square feet, 17,000 of which will consist of four ISO Class 7 clean rooms to its VistaMed joint venture in Carrick-On-Shannon, Ireland. The project also includes additional supplemental equipment for new extrusion lines, specialized lines for high tolerance extrusion, additional braiding capabilities and catheter assembly stations, as well as other assembly operations.

Catheters is one area of the medical device realm that Freudenberg Medical said is a priority, with CEO Max Kley citing "massive growth" in the business. The expansion also will focus on high-pressure braided tubing for medical injection.