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December 20, 2018 01:00 AM

Year in Review: Medical suppliers face continued pressures

Chris Sweeney
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    Flexan L.L.C.

    The rising cost of health care can be felt all the way through the supply chain, and companies that supply medical device manufacturers are feeling the pressure to add capabilities.

    It doesn't look like Washington will provide any additional clarity to the health care situation, so it's highly likely these pressures will continue to drive decisions for the foreseeable future. It already had a major impact in 2018, as many of the expansions and acquisitions that occurred were driven to make suppliers stand out to OEMs.

    Industry companies have responded to this pressure in different ways. Raumedic, Datwyler and West did so through expansion—the first two bringing manufacturing plants to the U.S. Others like Trelleborg, Flexan/FMI, Freudenberg Medical and Lubrizol, went out and acquired companies that brought in capabilities they previously did not have, ones that will make them a "one-stop shop."

    West realigns footprint

    West Pharmaceutical Services Inc. grew on one front, while consolidating on another.

    In Europe, the firm opened a 220,000-sq.-ft. facility in Waterford, Ireland, to produce the firm's proprietary elastomeric laminate sheeting used to package insulin for use in pen injectors. It will employ 100 and projects to add more jobs as it begins commercial production.

    But in the U.S., West elected to close a contract manufacturing plant in Frankfort, Ind., and consolidate its site in Clearwater, Fla., into a nearby facility in St. Petersburg, Fla. The work in Indiana will be moved to Williamsport, Pa., with 54 employees in Frankfort facing layoffs, West said in August.

    Datwyler opens U.S. plant

    Datwyler Sealing Solutions

    Torsten Maschke, CEO of Datwyler Sealing Solutions, cuts the ribbon to open the firm's new medical plant in Middletown, Del.

    Datwyler Sealing Solutions established a 200,000-sq.-ft. medical manufacturing facility that will produce high-quality elastomer components for the pharmaceutical containers and injectable drug delivery systems, like pre-filled syringes.

    The Middletown, Del.-site represents a $100 million investment and began operations in the fall. It will produce up to 1 billion components per year at the end of Phase 1. The site's full capacity will be at least 2 billion components annually.

    The medical front was not the only area Datwyler grew in. The firm made two acquisitions to strengthen its O-ring business in both automotive and oil and gas. It acquired Bins Industria de Artefatos de Borracha Ltda., giving its automotive unit manufacturing presence in Brazil. And in a separate move, Datwyler acquired U.S.-based Parco Inc. to enhance its footprint and break into oil and gas.

    Flexan acquires IntroMed

    Flexan L.L.C. has been particularly busy the last few years, and 2018 was no exception.

    The firm acquired IntroMed L.L.C., a manufacturer of patented sheath introducers used in catheter placements. The Salt Lake City operation's unique technology was a big driver for the deal, but Flexan said the firm also allows it to partner with any customer in any space trying to solve a technical problem.

    IntroMed operates out of the same complex as Medron L.L.C., which Flexan acquired in 2016. The move allowed Flexan to bring thermoplastic extrusion back under its roof and become more vertically integrated. IntroMed's patented technology will open up new technologies for both Medron and FMI, Flexan's medical brand.

    IRP grows on all fronts

    IRP Group Holdings Inc. is experiencing growth throughout all three of its divisions, including the medical industry.

    It's now up to 10 horizontal liquid silicone rubber injection machines inside of its Class 8 clean room, making two new additions in 2017. The firm has more than tripled the amount of presses since 2013, when it only operated three. IRP Medical said in February it was also in the process of investing $250,000 for a new tool shop.

    Like Datwyler, the firm operates in other areas and made moves on those fronts too. Its Mikron Rubber division acquired Precision Molded Products Inc., merging the two companies to form MikronPMP Aerospace. And its Abba Roller division also added a new press to its operations.

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