The People’s Republic of China is one of the world’s fastest growing markets in the medical device sector. L&R (Lohmann & Rauscher), a long-established German-Austrian company based in Rengsdorf and Vienna, has already been operating in China for several years via its Chinese joint venture “Topamed”. After successfully penetrating the Chinese market with L&R products, L&R is now taking the next step: establishing its own company, L&R China, with offices in Shanghai and Beijing.
China, the largest economy in the world after the US, is growing rapidly – and with it the need for medical ‘know-how made in Germany’. For this reason L&R has also been active in China since 2006.
L&R has operated a manufacturing joint venture with around 1,000 employees since 2005 which produces premium medical products from the L&R range and since 2006 it has also operated a distribution joint venture for the Chinese market.
Establishing our own company as a systematic step towards internationalisation
L&R is now systematically strengthening its commitment to China: With L&R China the L&R group now has another wholly owned subsidiary among its holdings. The new company, which is located in Shanghai and Beijing, succeeds the previous joint venture “Topamed” with Chinese partner “Shaoxing Zhengde Surgical Dressing Co. Ltd” with 160 employees. It will focus on further expanding sales via retailers. L&R will also coordinate with Shaoxing Zhengde on future joint market development.
“The success of the last few years has encouraged us to systematically take the next step. Alongside our very successful market development, we have been using this time to gain experience and to prepare intensively for this step. Establishing L&R China moves us further towards our stated goal of continuing to expand our strong brand based on premium medical and hygiene products as a preferred partner and solution provider in China,” said L&R CEO Wolfgang Süßle.
Collaborative transfer of knowledge and values
L&R will also be relying on the transmission of expertise and experience in China: Medical know-how and many years of experience as a reliable solution provider working hand in hand with our customers are important exports.
In addition to premium products and therapy systems such as modern wound care techniques, innovative OR systems and lymph and negative pressure therapy, there will also be a collaborative transfer of knowledge and values. For example, the established training concepts for customers, partners and employees such as the “L&R Academy” and the “Viennese compression school” will be continued in China – and establish L&R as a pioneer in holistic patient care.
Dynamic commitment to the expanding Chinese market
The establishment of L&R China demonstrates L&R’s commitment to one of the world’s largest growing markets. In 2012, China generated a gross domestic product (GDP) of more than US$8 trillion, of which about US$13.4 billion was from medical devices. In addition to this, the health reforms initiated in 2009 by the Chinese government with a budget of about €100 billion plan a massive expansion of the medical infrastructure, including building more than 30,000 new hospitals and training about 7 million caregivers for the elderly. The government also plans to modernise existing public hospitals. With its innovative products, concepts and therapy systems, L&R will make an important contribution to improving medical care in China for the long term.
More information about the L&R Group can be found at:
www.Lohmann-Rauscher.com
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