| By Liu Yuanyuan, Asia Manufacturing Pharma |
| Tuesday, 16 September 2008 |
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A new large glass pharmaceutical packaging facility of the world’s leading specialty glass manufacturer Schott AG, in Suzhou, China, was recently put into operation, despite opposition from some Chinese |
domestic pharmaceutical packaging manufacturers, making the Germany-based company the first of its kind to be approved by China’s State Food and Drug Administration to set up plants in the country.
Schott said the new facility is expected to have an annual production capacity of 100 million pharmaceutical glass vials and ampoule bottles, most of which will be marketed in China.
China will become the fifth largest pharmaceutical market across the globe by 2010, and the largest by 2050,
Schott Chairman Udo Ungeheuer said in an interview. However, the Chinese pharmaceutical packaging market, which is saddled by excess production capacity, remains dominated by low-priced products. Schott is targeting the country’s high-end market as demand for high-quality pharmaceutical packaging is expected to grow at an annual rate of 15 per cent with the rapid development of the pharmaceutical market, according to Udo Ungeheuer. |
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Schott is renowned worldwide for its superior pharmaceutical glass tubes and bottles. The European and American markets for pharmaceutical tube glass vials are almost completely monopolized by several western medical packaging companies including Schott. As a result, Schott’s plan to enter the Chinese pharmaceutical packaging market sparked a big panic among and opposition from the players in the market.
Udo Ungeheuer, who has been aware of the hostility from the market, underlined that the company is only looking to develop the high-end pharmaceutical packaging market in China and will not compete with local suppliers.
Michael Buenning, President of Schott China, stated the company’s entry into the market will not pose a threat to most Chinese pharmaceutical packaging manufacturers as its high-quality products have very high production costs. Schott is expected to increase the production capacity of pharmaceutical |
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packaging products at its Suzhou facility over the next two years based on its confidence in the country’s market potential, added Michael Buenning.
Currently, the Chinese market for pharmaceutical tube glass vials is facing fierce competition while production capacity in the market far exceeds actual demand. Furthermore, medical glass bottles made in China lag far behind those made in western countries in terms of appearance as well as physical and chemical specifications.
These factors, plus the entry of Schott with its superior technology combined with the overall problem of soaring costs for raw materials, are putting greater pressure on Chinese pharmaceutical packaging manufacturers that so far have only had to deal with the single issue of low-cost competition.
To read Schott's press release about the opening, please click here : SCHOTT opens new plant in Suzhou, China
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