After establishing the sales subsidiary Lohmann & Rauscher China Medical Products Co., Ltd. (L&R China), headquartered in Shanghai and Beijing, the globally active L&R Group continues to expand its presence in China. Lohmann & Rauscher (L&R) is an international leading supplier of premium medical devices and hygiene products of the highest quality – from conventional bandages to modern treatment and nursing systems.
With the full takeover of L+L Healthcare Hubei Co., Ltd. (LLX) and its re-establishment as Lohmann & Rauscher Hubei Medical Products Co., Ltd. (L&R Hubei), L&R is now investing more in the production of OR drapes and clothing and thus in its core business segment set-systems & hygiene. After the recent establishment of the own sales business L&R China, this is the next active step toward intensifying the commitment in China.
The production joint venture LLX, which was established by the L&R Group in 2005 with its partner Winner Group Limited, is specialized in the production of OR drapes and clothing and has currently around 800 employees. Because of the highly integrated and successful cooperation between the L&R Group and LLX, the L&R executive board decided to completely take over LLX. On one hand, LLX produces almost exclusively for the L&R Group. On the other, LLX contributes enormously to the success of L&R OR products in the core business segment set systems & hygiene – because of its competitiveness (product quality, reliability of supply and flexibility). This has enabled L&R to significantly increase its revenue in the segment “OR sets & hygiene” above market growth in the last years.
L+L Healthcare Hubei Co., Ltd. becomes Lohmann & Rauscher Hubei Medical Products Co., Ltd.
With the acquisition of the remaining shares in early 2014, the L&R Group will become the sole owner of the former joint venture located in Xishui in Hubei province. Parallel to the full takeover, LLX will be re-established and renamed Lohmann & Rauscher Hubei Medical Products Co., Ltd. (L&R Hubei).
Wolfgang Süßle (CEO L&R Group): “This step is a clear upgrading of and a clear commitment to our activities in China: After eight years of successful cooperation, we have decided to make this sustainable strategic investment. This complete integration of L&R Hubei into the L&R Group will enable us to systematically continue and to greatly expand the positive developments achieved in the last years in the OR segment with the L&R brands Raucodrape® and Sentinex®, as well as our set solutions Setpack® and Kitpack® and our service concept L&R Optiline®.”
Two strong subsidiaries in one of the largest growth markets in the world
The full takeover and re-establishment of L&R Hubei is the strategic extension of L&R activities in the Chinese growth market. Parallel to this, L&R is establishing the subsidiary Lohmann & Rauscher China Medical Products Co., Ltd (L&R China), headquartered in Shanghai and Beijing. L&R China will be responsible for sales of L&R products as well as the transfer of training concepts to customers, partners and employees within the company owned “L&R Academy”. As Wolfgang Süßle explains, “Our goal is to strongly position the L&R Group via our sales subsidiary L&R China as the reliable partner and solution provider in China on the basis of our premium medical devices, hygiene products and services.”
The healthcare industry in China is one of the most important sectors of the economy. In 2012, China generated a gross domestic product (GDP) of more than US$ 8 trillion, of which about US$ 13.4 billion were from medical devices. The health reforms initiated in 2009 by the Chinese government with a budget of about € 100 billion also plans to massively expand the medical infrastructure, including building more than 30,000 new hospitals and training about 7 million caregivers for the elderly.
With its innovative products, concepts and therapy systems as well as two subsidiaries in the country, L&R is making an important contribution to improving medical care in China for the long term.
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Further information on Lohmann & Rauscher (L&R) can be found at: www.lohmann-rauscher.com
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