Toshiba Medical Systems has established the Chinese Procurement Centre in Shanghai, replacing activities that formerly took place at the company's headquarters in the country in Dalian.
By opening the Chinese Procurement Centre in Shanghai, Toshiba has made its headquarters as the global procurement control centre and established a cooperative procurement system consisting of three procurement bases, including the Toshiba Dalian medical equipment factory, which is the company's manufacturing subsidiary in China. The objectives are expansion and improved efficiency in global procurement. In a bid to target "extremely challenging" business conditions such as the high yen and sales price erosion, Toshiba plans to increase its global procurement percentage to 75 per cent by the end of fiscal 2014, thus reducing manufacturing costs and countering the effects of exchange rates.
In a separate development, Covidien, a US healthcare company, has shown similar commitment to the country with the formal opening of is China Technology Centre (CTC) R&D facility, also in Shanghai.
With a total investment of US$45 million over a three year period, the CTC will eventually employ more than 300 people. The facility spans more than 100,000 sqft, houses 17 laboratories and has surgical and simulation suites that enable healthcare professionals to be actively involved in the medical device design and development process. Specifically, the CTC has two core areas. the first of which is the design of tailored products that meet the needs of China and other emerging markets. The second is tap in to the use of employees in Asia to create and develop new medical device technologies.
The CTC will bid to complement Covidienâs other operations in China, which include ten commercial offices, a manufacturing centre and training facilities for healthcare professionals. The Covidien Clinical Institute (CCI) offers training for healthcare professionals on the safe and effective use of the latest medical devices and procedures, advancing cliniciansâ expertise and improving patient outcomes.